Money — Notation and Change

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Decimal Money Notation

In the UK, money is written in pounds (£) and pence (p). There are 100 pence in every pound. When we write a money amount in pounds, we always use exactly two decimal places for the pence part.

So £3 and 4 pence is written as £3.04, not £3.4. Writing £3.4 is ambiguous — the zero in the tenths place must be there to show there are zero tens-of-pence. Without it the amount looks like three pounds and four tenths of a pound.

Pence → Pounds: divide by 100 | Pounds → Pence: multiply by 100

Key rule: When writing pence as pounds, always use two digits after the decimal point. If the pence value is less than 10, insert a leading zero: 5p = £0.05, not £0.5.

Worked Example 1 — Convert 304p to pounds

Step 1 — Identify the operation

Pence to pounds means we divide by 100.

Step 2 — Divide

\(304 \div 100 = 3.04\)

Step 3 — Write with pound sign and check 2 d.p.

Answer: £3.04

304p = £3.04 The digits move two places to the right of the decimal point.

Worked Example 2 — Convert £7.08 to pence

Step 1 — Identify the operation

Pounds to pence means we multiply by 100.

Step 2 — Multiply

\(7.08 \times 100 = 708\)

Step 3 — Write with p unit

Answer: 708p

£7.08 = 708p (7 pounds = 700p, 8 pence = 8p, total 700 + 8 = 708p)

Common mistake: Never write both symbols together. £0.84p is incorrect — use either £0.84 or 84p, never both at once.

✍ Quick Check 1 — Decimal Money Notation

Question 1 of 10

Calculating Change

Change is the difference between the amount you pay and the price of what you buy. If something costs £3.67 and you pay with a £5 note, the shopkeeper gives you back £5.00 − £3.67 = £1.33.

A reliable method is the count-up method (counting on). Start from the price, count up to the amount paid in convenient steps, then add all the steps together.

Change = Amount Paid − Price of Item(s)

Count-up tip: First round up to the nearest whole pound, then count on to the amount paid in whole pounds. Add all steps together at the end.

Worked Example 1 — Item costs £3.67, pay with £5.00

Step 1 — Write the subtraction

Change = £5.00 − £3.67

Step 2 — Count up to nearest pound

£3.67 → £4.00 = 33p

Step 3 — Count up to amount paid

£4.00 → £5.00 = £1.00

Step 4 — Total the steps

33p + £1.00 = £1.33

Change = £1.33

Worked Example 2 — Shopping total £14.82, pay £20.00

Step 1 — Write the subtraction

Change = £20.00 − £14.82

Step 2 — Count up to nearest pound

£14.82 → £15.00 = 18p

Step 3 — Count up to amount paid

£15.00 → £20.00 = £5.00

Step 4 — Total the steps

18p + £5.00 = £5.18

Change = £5.18

Watch out: Always line up the decimal points when subtracting money amounts. A misaligned decimal will give the wrong answer every time.

✍ Quick Check 2 — Calculating Change

Question 1 of 10

Comparing prices to find the best value is its own full lesson — see Lesson 9.5 — Best Buys and Unit Pricing.

Practice: Convert Pence to Pounds

Convert each amount of pence into pounds. Type your answer to 2 decimal places (e.g. 3.05). Do not include the £ symbol.

#	Question	Answer	Result
1	305p
2	99p
3	1207p
4	3p
5	1000p
6	650p
7	8p
8	2450p
9	15p
10	999p

⚠ Things to Watch Out For

Incorrect decimal notation: £3.40 NOT £3.4. Money always uses two decimal places. £3.4 means £3 and 4/10 — ambiguous. Write £3.40 to be clear.
Converting pence to pounds: 340p = £3.40 (divide by 100). £3.40 = 340p (multiply by 100). Confusing the direction is very common.
Calculating change — subtracting the wrong way: Change = amount given − price. If an item costs £3.74 and you pay £5.00, change = £5.00 − £3.74 = £1.26. Not £3.74 − £5.00.
Rounding money during multi-step calculations: Keep full precision throughout. Round to 2 d.p. only at the final answer.

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Money — Notation and Change

Learning Objectives

Real-World Applications

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Worked Example 1 — Convert 304p to pounds

Worked Example 2 — Convert £7.08 to pence

Worked Example 1 — Item costs £3.67, pay with £5.00

Worked Example 2 — Shopping total £14.82, pay £20.00

Practice: Convert Pence to Pounds

⚠ Things to Watch Out For