X Tables
money

Money word problems

Solve real-life shopping, saving and change problems.

Quick answer

You can solve money word problems by reading carefully, identifying what you need to do, and using addition, subtraction, multiplication, or division with the amounts given.

Learning outcome

By the end of this page, you will be able to solve real-life money problems using addition, subtraction, multiplication, and division. Success signs:
  • You can read a money word problem and understand what it's asking you to do
  • You can add up prices to find totals
  • You can work out how much change you should get
  • You can share money fairly between friends

Why this matters

Money word problems help you use maths in everyday life. When you go shopping, save up for something special, or share your pocket money, you're using the same maths skills you learn in school. These problems help you understand how money works and how to make smart choices with it. The skills you learn here will help you when you're older, too, like when you're budgeting, planning a trip, or working a job.

How it works

Solving money word problems is like solving a puzzle. Here's how to do it step by step:
  1. Read the problem carefully – Don't rush! Read it at least twice.
  2. Find the important numbers – What amounts are mentioned?
  3. Decide what to do – Do you need to add, subtract, multiply, or divide?
  4. Do the maths – Use your chosen operation to solve.
  5. Check your answer – Does it make sense in the real world?

Examples you can see

Let's look at some real money problems and how to solve them. Example 1: Adding prices Lucy wants to buy a toy that costs £3.50 and a book that costs £2.25. How much money does she need altogether?
  • First, we add the prices: £3.50 + £2.25
  • Start with the pence: 50p + 25p = 75p
  • Then the pounds: £3 + £2 = £5
  • Total: £5.75
Example 2: Finding change Tommy has £10 and buys a sandwich for £2.75. How much change does he get?
  • Subtract the cost from what he has: £10.00 - £2.75
  • Think of it as: £10 - £2 = £8, then £8 - 75p = £7.25
  • Change = £7.25
Example 3: Sharing money Three friends have £12 to share equally. How much does each friend get?
  • Divide the total by the number of people: £12 ÷ 3
  • Each friend gets £4

Try it as a mini adventure

Adventure: The Shopping Trip You're going to the shop with £20 to buy some treats for your family. Here's your shopping list:
  • 2 packets of crisps at £1.20 each
  • 1 chocolate bar for £1.50
  • 3 apples at 50p each
  • 1 bottle of juice for £2.00
  1. First, calculate how much the crisps cost: 2 × £1.20 = £2.40
  2. Then, calculate the apples: 3 × 50p = 150p = £1.50
  3. Add up all your items:
    • Crisps: £2.40
    • Chocolate: £1.50
    • Apples: £1.50
    • Juice: £2.00
  4. Total: £7.40
  5. How much money do you have left? £20 - £7.40 = £12.60
This is a real-life shopping trip. You can do this at a real shop or with play money at home!

Common mistakes

  • Mistake: Adding the pounds and pence separately without lining them up properly.
    Why it happens: Not paying attention to decimal points.
    Fix: Write down the pounds and pence clearly, like this:
    • £3.50
    • + £2.25
    • ______
    • £5.75
  • Mistake: Forgetting to check if the answer makes sense.
    Why it happens: Rushing through the problem.
    Fix: Ask yourself, "Does this answer make sense?" If you're buying something that costs £5 and you pay with £10, you should get £5 back.
  • Mistake: Mixing up which operation to use.
    Why it happens: Not reading the problem carefully.
    Fix: Look for key words like "total", "change", "share", "each", "more than", or "less than".

Parent and carer guide

Parents and carers can help by:
  • Reading money word problems aloud with your child
  • Encouraging them to underline or highlight important numbers
  • Using real coins and notes to act out problems
  • Practising with everyday shopping scenarios
  • Checking that answers make sense in the real world
Five-minute help tips:
  1. Ask your child to explain how they solved a problem
  2. Use a pretend shop at home with play money
  3. Look for money problems in newspapers or on TV
  4. Encourage them to draw pictures of the problems
  5. Don't worry if they make mistakes – that's how we learn!

Practice questions

  1. Sarah buys a pencil for 45p and an eraser for 25p. How much does she spend?
  2. Ben has £5 and buys a toy for £3.20. How much change does he get?
  3. Four friends share £16 equally. How much does each friend get?
  4. Tom buys 3 toy cars at £2.50 each. How much does he spend?
  5. Mum buys 2 bags of sweets at 75p each. How much does she spend?
Answers:
  1. 70p
  2. £1.80
  3. £4
  4. £7.50
  5. £1.50

FAQ

What is a money word problem?

A money word problem is a maths problem that uses real-life situations with money, like shopping, saving, or sharing. You have to use addition, subtraction, multiplication, or division to find the answer.

How do I know which operation to use?

Look for key words. "Total" or "altogether" means add. "Change" or "left" means subtract. "Share" or "each" means divide. "Times" or "multiplied by" means multiply.

Why is it important to check my answer?

Checking your answer helps you make sure it makes sense. If you're buying something for £3 and paying with £10, you should get £7 back. If you get £30 back, you know something went wrong!

Can I use a calculator for money problems?

Yes, calculators are great for checking your work. But it's important to understand how to do the maths by hand first so you know if your calculator is working correctly.

How can I practice money word problems at home?

You can practice by shopping with your child, setting up a pretend shop, or using play money to act out problems. You can also find money problems in books, games, or online.