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money

Money vocabulary

Explain price, cost, change, total, budget, saving, discount and value.

Quick answer

Money vocabulary helps you understand how to talk about, spend, save, and manage money. Words like price, cost, change, total, budget, saving, discount, and value help you make smart choices when buying things or saving up.

Learning outcome

By the end of this page, you will know what key money words mean and how to use them in everyday situations like shopping, saving, and planning. Success signs:
  • You can say what price, cost, and change mean
  • You can explain how to use a budget when spending
  • You can tell the difference between saving and spending
  • You can use words like discount and value when talking about money

Why this matters

Understanding money vocabulary helps you:
  • Shop smarter and know if you have enough money
  • Save up for something special
  • Plan how to spend your pocket money or earnings
  • Understand prices and deals when shopping
  • Make good choices about spending and saving
Whether you're helping your parent buy groceries or saving up for a toy, knowing these words makes it easier to understand money and make smart decisions.

How it works

Let’s explore each money word one by one, starting with simple ideas and building up. Price – This is how much one item costs. For example, a pencil costs 50p. That’s the price. Cost – This is how much it costs to buy something. If you buy 3 apples and each costs 20p, the total cost is 60p. Change – This is the money you get back when you pay more than something costs. If you pay £1 for a £70p sweet, you get 30p change. Total – This is the whole amount when you add things together. If you buy 2 pens at 40p each, the total is 80p. Budget – This is a plan for how to spend your money. For example, if you have £5, you might budget 20p for a snack, 30p for a drink, and save the rest. Saving – This is putting money aside for later. You save your pocket money to buy a bike. Discount – This is when something costs less. If a toy costs £3 but is on sale for £2, you get a £1 discount. Value – This is how useful or good something is for the money you pay. A £5 toy that lasts a year has more value than a £5 toy that breaks after a week.

Examples you can see

Let’s imagine you’re at the shop with your parent. Price: You see a toy car that costs £2.50. That’s the price. Cost: You buy 2 toy cars. Each costs £2.50, so the total cost is £5. Change: You give the shopkeeper £10. The total cost is £5, so you get £5 back as change. Total: You buy 3 bananas at 15p each. The total is 45p. Budget: You have £3. You plan to spend 50p on a drink, 75p on a snack, and save the rest. Saving: You get £2 a week for pocket money. You save £1 and spend £1. Discount: A £10 jumper is 20% off. That means you save £2 and pay £8. Value: You buy a £5 toy that lasts a year. It’s good value. If another £5 toy breaks after a week, it’s not good value.

Try it as a mini adventure

Adventure: The Money Shop You are a shopkeeper and need to help customers understand money words. Here’s your mission: 1st time: A customer wants to buy a £3 toy. What is the price? 2nd time: You sell 3 toys. Each costs £3. What is the total cost? 3rd time: The customer pays £10. What is the change they get? 4th time: You have £5 in your till. You spend £2. How much is left in your budget? 5th time: You save £1 of every £5 you earn. What is your saving rate? 6th time: A £10 toy is now £8. What is the discount? 7th time: You buy a £4 toy that lasts a year. What is the value of this toy?

Common mistakes

  • Mistake: Thinking that total and cost are the same. Why it happens: Confusing words that sound similar. Fix: Remember that total means all the money added together, and cost is how much something costs to buy.
  • Mistake: Not knowing the difference between saving and spending. Why it happens: Not understanding the purpose of saving. Fix: Saving means putting money aside, while spending means using it now.
  • Mistake: Thinking discount means the same as price. Why it happens: Not understanding that discount is a reduction in price. Fix: A discount is the amount saved, not the price itself.
  • Mistake: Confusing budget with total. Why it happens: Thinking budget is just how much money you have. Fix: A budget is how you plan to spend your money, not just how much you have.

Parent and carer guide

As a parent or carer, you can help your child by:
  • Using these words in everyday situations: “Let’s budget our £5 for the shop,” or “That toy is a good value.”
  • Playing games like “What’s the price?” or “How much change would you get?”
  • Letting your child plan a small budget for a toy or treat.
  • Discussing how much things cost and how to save up for them.
  • Encouraging them to think about value when buying things.
What to say:
  • “What do you think the price of that is?”
  • “Can you help me work out the total cost?”
  • “How much change would we get?”
  • “Why is that toy a good value?”
What not to worry about:
  • Not knowing all the words at once. Learning happens gradually.
  • Getting confused between similar words. It’s normal to mix them up at first.
  • Not understanding everything perfectly. Practice makes progress!

Practice questions

  1. What is the price of a £2 toy?
  2. If you buy 3 apples at 25p each, what is the total cost?
  3. You pay £5 for a £3.20 book. How much change do you get?
  4. You have £10 and spend £4. What is your budget left?
  5. You save £2 from every £5 you earn. What is your saving rate?
  6. A £12 toy is on sale for £8. What is the discount?
  7. You buy a £3 toy that lasts 6 months. What is its value?
Answers:
  1. £2
  2. 75p
  3. £1.80
  4. £6
  5. 40%
  6. £4
  7. £6 per month

FAQ

What is the difference between price and cost?

Price is how much one item costs, while cost is the total amount for buying more than one item.

Why do we need to know about budget?

A budget helps you plan how to spend your money so you don’t run out before you’ve bought what you need.

How can I teach my child about money words?

Use everyday situations like shopping, saving, or planning for a treat. Ask questions and let them explain what they think each word means.

What does value mean in money?

Value means how useful or good something is for the money you pay. A good value item lasts longer or works better.

How can I help my child with saving?

Give them a piggy bank, help them set a goal, and talk about how saving helps them get what they want.