Read £ and p. Convert between them. Add, subtract, and work out change.
The six facts you need
Every money question uses one of these. You don't need to remember anything else.
1 · The formatMoney is written £X.YY. The two digits after the decimal are pence.
2 · £1 = 100pTo go from pounds to pence: × 100. To go from pence to pounds: ÷ 100.
3 · Zero holds a place£3.05 has 5p on top of £3 — not 50p. The 0 is a placeholder.
4 · Adding moneyLine up the decimal points. Add pence — if over 100, carry a pound. Add pounds.
5 · Subtracting moneyLine up decimals. If pence is smaller, borrow £1 (100p) from the pounds column.
6 · ChangeChange = amount paid − cost.
Worked example 1 - convert £ to p
Convert £2.50 to pence.
Read it. Change £2.50 into pence.
The fact. £1 = 100p. Multiply pounds by 100 to get pence.
£2.50 × 100 = 250.
So £2.50 = 250p.
Answer: 250p
Watch outDo not forget the pence part. £2.50 is NOT just 200p.
Worked example 2 - convert p to £
Convert 175p to pounds.
Read it. Change 175p into pounds.
The fact. £1 = 100p. Divide pence by 100 to get pounds.
175 ÷ 100 = 1.75.
So 175p = £1.75.
Answer: £1.75
Watch outThe digits go the SAME WAY — just add the decimal point 2 places from the right.
Worked example 3 - zero as a placeholder
In £3.05, how many extra pence are there on top of the £3?
Read it. Find the pence part of £3.05.
The fact. The digit AFTER the decimal is TENS OF PENCE. The digit after that is PENCE.
£3.05 = 3 pounds + 05 pence.
The 0 is in the tens-of-pence spot (means no tens).
The 5 is in the pence spot.
Answer: 5p
Watch outA common mistake: reading £3.05 as ‘three pounds fifty’. It is really ‘three pounds five’.
Worked example 4 - add money
£2.40 + £1.30 = ?
Read it. Add £2.40 and £1.30.
The fact. Line up the decimal points and add like normal decimals.
Pence: 40 + 30 = 70.
Pounds: 2 + 1 = 3.
So total = £3.70.
Answer: £3.70
Watch outKeep the decimal point in the SAME COLUMN in your answer as in the numbers you added.
Worked example 5 - adding with carry
£1.65 + £2.50 = ?
Read it. Add £1.65 and £2.50.
The fact. When pence add up to more than 100, carry to the pounds column.
Pence: 65 + 50 = 115. That's 1 pound and 15p.
Pounds: 1 + 2 + 1 (carried) = 4.
Pence: 15.
So total = £4.15.
Answer: £4.15
Watch outWhen pence adds up to more than 100, do NOT write ‘115p’. Carry the 100 as £1.
Worked example 6 - subtract money
£5.00 − £1.75 = ?
Read it. Take £1.75 away from £5.00.
The fact. Line up decimals. If pence is smaller, borrow £1 (100p) from pounds.
Pence: 00 − 75. Can't. Borrow £1 (100p) from pounds.
Now: 100 − 75 = 25p.
Pounds: (5 − 1) − 1 = 3.
So £5.00 − £1.75 = £3.25.
Answer: £3.25
Watch outWhen you borrow from pounds, that £1 becomes 100p in the pence column.
Worked example 7 - change from £10
You pay with £10 for something costing £6.85. What is your change?
Read it. Find change from £10 for £6.85.
The fact. Change = paid − cost.
£10.00 − £6.85.
Pence: 00 − 85. Borrow £1: 100 − 85 = 15.
Pounds: (10 − 6) − 1 = 3.
So change = £3.15.
Answer: £3.15
Watch outChange from £10 is NOT £10 minus the pounds only — subtract the pence too.
Worked example 8 - multi-step change
You buy 3 pens at £2.50 each and pay with £10. What is your change?
Read it. Find change from £10 for 3 pens at £2.50 each.
The fact. First, total cost = each × how many. Then, change = paid − total.
Total cost: 3 × £2.50 = £7.50.
Change: £10.00 − £7.50 = £2.50.
Answer: £2.50
Watch outWork out the total FIRST, then subtract. Do not subtract the price of one item and forget the rest.
Practice · Section A
Reading & converting
£ ↔ p · Zero as a placeholder
Practice · Section B
Adding money
With and without carrying
Practice · Section C
Subtracting & change
Borrowing · Change from a note
Ready for more? 100 questions
When you have done these 12, you are ready for the bigger practice paper.
It has 100 questions. They start very easy and get harder near the end. Every question is still Grade 1 — nothing harder. You can stop at any time and come back.