Place value and money

Quick answer

Place value and money help you understand how much each digit in a number is worth, and how to count and use pounds and pence in real life.

Learning outcome

By the end of this page, you will understand how the position of a digit tells you its value in a number, and how to use pounds and pence to count money.

• You can identify the value of each digit in a number up to 100.
• You can count money using pounds and pence.
• You can add up small amounts of money.
• You can match money amounts to the right number of coins or notes.

Why this matters

Understanding place value helps you read and write numbers correctly. It's also super useful when you're shopping, saving money, or even playing games with friends. When you know how much each digit is worth, you can count money easily and know if you have enough to buy something.

Whether you're counting coins in your piggy bank, buying a snack at the shop, or sharing a pizza with your family, place value and money help you make smart choices and solve problems.

How it works

Let’s start with the basics. Every number has a place value – that means each digit has a value depending on where it is in the number.

For example, in the number 23:

• The digit 2 is in the tens place – so it means 2 tens, or 20.
• The digit 3 is in the ones place – so it means 3 ones, or 3.

When we put them together, 23 means 20 + 3 = 23.

With money, pounds and pence work the same way. One pound is the same as 100 pence. So, if you have 1 pound and 50 pence, that’s 150 pence total.

When we write money, we use a decimal point to separate pounds and pence:

• £1.50 means 1 pound and 50 pence.
• £2.00 means 2 pounds and 0 pence.

Examples you can see

Let’s look at some examples with numbers and money.

Example 1: Numbers with place value

Look at the number 47:

• The 4 is in the tens place – so it’s worth 40.
• The 7 is in the ones place – so it’s worth 7.
• Together: 40 + 7 = 47

Example 2: Money with place value

You have £2.35. What does this mean?

• The 2 is in the pounds place – so it’s 2 pounds.
• The 3 is in the tens of pence place – so it’s 30 pence.
• The 5 is in the ones of pence place – so it’s 5 pence.
• Together: £2 + 30p + 5p = £2.35

Example 3: Adding money

You have 50p and 20p. How much is that altogether?

• 50p + 20p = 70p

Example 4: Real-life money

You want to buy a toy that costs £1.20. You have a £1 coin and two 10p coins. Do you have enough?

• £1 + 10p + 10p = £1.20
• Yes, you have exactly enough!

Try it as a mini adventure

The Money Mission

You are going on a treasure hunt! To find the treasure, you must collect the right amount of money from different coins and notes. Here’s your mission:

1st stop: Collect 70p using only 20p coins and 10p coins.

2nd stop: Collect £1.40 using a £1 coin and some pence.

3rd stop: Count how much money you have if you collect 3 coins of 50p each.

4th stop: Add up 20p, 50p, and 10p to see how much you have.

5th stop: Find a way to make £2.50 using 10p, 20p, and £1 coins.

Can you complete all five stops?

Common mistakes

• Mistake: Thinking that 10p is worth more than 1p. Why it happens: Confusing the value of the digits. Fix: Remember that 10p = 10 pence, and 1p = 1 pence. 10p is worth more than 1p because 10 > 1.
• Mistake: Writing £1.05 as £1.5. Why it happens: Mixing up the decimal point. Fix: Remember that the first number after the decimal point is tens of pence, and the second is ones of pence.
• Mistake: Counting 50p + 50p = 100p as £10. Why it happens: Not knowing that 100p = £1. Fix: Remember that 100 pence = 1 pound.

Parent and carer guide

Help your child understand place value and money by:

1. Using real coins and notes to count and add up.
2. Playing a shopping game at home with a pretend shop.
3. Looking at prices together when shopping and asking, “How much is that?”
4. Practising writing numbers like £2.35 and asking what each digit means.
5. Using place value charts to show how digits move and change value.

Remember: It’s okay if they make mistakes – they’re part of learning. Keep it fun and keep encouraging them!

Practice questions

1. What is the value of the 3 in 34?
2. How much is 50p + 20p?
3. Write £1.25 using coins.
4. What is 100p in pounds?
5. How much is 20p + 30p + 10p?
6. What is the value of the 6 in 67?
7. How many pence are in £2.50?
8. What is 40p + 30p?
9. Write 80p using pounds and pence.
10. How much is 10p + 5p + 20p?

Answers:

1. 30
2. 70p
3. One £1 coin, two 20p coins, and one 5p coin (or other combinations)
4. £1
5. 60p
6. 60
7. 250p
8. 70p
9. £0.80
10. 35p

FAQ

What is place value?

Place value is the value of each digit in a number depending on where it is. For example, in 45, the 4 is in the tens place and means 40, and the 5 is in the ones place and means 5.

How do I know how much money I have?

You can add up the value of each coin or note. For example, if you have 50p, 20p, and 10p, you add them: 50p + 20p + 10p = 80p.

Why do we use decimal points with money?

The decimal point helps us separate pounds from pence. For example, £2.50 means 2 pounds and 50 pence.

Can I use pence to make pounds?

Yes! 100 pence equal 1 pound. So, 200 pence = £2.

How can I practice place value and money at home?

You can use real coins, play pretend shopping, count your pocket money, or draw money amounts to help you see the value of each digit.