vocabulary
Child-friendly Money vocabulary
Child-friendly definitions and examples for words such as price, cost, change, budget, saving and value.
Quick answer
Child-friendly money vocabulary helps children understand words like price, cost, change, budget, saving, and value. These words are important when shopping, saving pocket money, or playing store games.Learning outcome
By the end of this page, you will know what money words mean and how to use them in everyday life. Success signs:- You can explain what price, cost, and change mean
- You can describe what a budget is and why it helps
- You can tell the difference between saving and spending
- You can say what value means when buying things
Why this matters
Understanding money words helps you make smart choices when you go shopping, save up for something special, or play games that involve money. These words help you talk about money like grown-ups do. Knowing these words makes it easier to learn about maths and money as you grow up.How it works
Money words help us talk about how much things cost, how much money we have, and how we can use it. Let’s look at each word one by one, starting with the most common ones.Examples you can see
Let’s use real-life situations to understand each word. Price – This is how much something costs. For example, a chocolate bar costs 50p. The price is 50p. 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 buy a toy for £2 and give the shopkeeper £5, you get £3 change. Budget – This is a plan for how you will spend your money. For example, if you have £10, you might plan to spend £5 on a book and £3 on sweets, leaving £2 for a pencil. Saving – This is when you keep some money instead of spending it. For example, if you get £5 pocket money and save £2, you saved £2. Value – This means how good something is for the money you pay. A toy that costs £5 and lasts a long time has good value.Try it as a mini adventure
Adventure: The Money Shop You are the shopkeeper in a pretend shop. You have these items:- Toy cars – 50p each
- Balloons – 20p each
- Stickers – 10p each
- Small toys – £1 each
- 2 toy cars = 2 × 50p = 100p = £1
- 3 balloons = 3 × 20p = 60p
- 1 small toy = £1
- Total cost = £1 + 60p + £1 = £2.60
- Change from £5 = £5 – £2.60 = £2.40
Common mistakes
- Mistake: Thinking that cost and price are the same word.
Why it happens: Children often hear both words used for the same thing.
Fix: Remember that price is how much one item costs, but cost is how much it costs to buy more than one item. - Mistake: Confusing saving with spending.
Why it happens: It’s easy to mix up keeping money and using it.
Fix: Saving means putting money aside. Spending means using it to buy things. - Mistake: Thinking that value means the most expensive thing.
Why it happens: Some children think that if something costs a lot, it’s better.
Fix: Value means good quality for the money. A cheap toy that lasts a long time has good value.
Parent and carer guide
Parents and carers can help children by:- Using money words in everyday conversation
- Playing store games at home with toys or food
- Letting children help plan a small budget for a trip or shopping
- Encouraging children to save money for something special
- Asking questions like: “What do you think is the best value for your money?”
- Ask your child to find 3 items in the house and tell you their price.
- Play a pretend shop game with 5 items and let your child be the customer or shopkeeper.
- Use a piggy bank to practice saving and spending.
- Ask your child to plan a small budget for a fun activity like going to the park.
Practice questions
- What is the price of a pencil if it costs 45p?
- If a book costs £3 and you pay with £5, how much change will you get?
- If you save £2 from your £5 pocket money, how much did you spend?
- What is the total cost of 4 stickers that cost 10p each?
- If you have £10 and spend £7, how much do you have left?
- The price is 45p
- You get £2 change
- You spent £3
- The total cost is 40p
- You have £3 left
FAQ
What does “value” mean in money?
Value means how good something is for the money you pay. A toy that lasts a long time and costs £3 has good value.
What is the difference between cost and price?
Price is how much one item costs. Cost is how much it costs to buy more than one item. For example, one apple costs 20p, but 5 apples cost 100p.
How can I teach my child about money words?
You can play games, go shopping, and talk about money in daily life. Use real items and make it fun. Ask questions like: “How much will that cost?” or “What change will we get?”
Why is it important to learn money vocabulary?
Knowing money words helps children make smart choices, understand how to save, and be ready for bigger maths lessons about money.
Can I use these words in games?
Yes! You can play games like "Shopkeeper" or "Budget Challenge" where you use words like price, cost, change, and budget.