FF.1 Solve word problems with coins and bills up to $20
What is financial literacy?
Financial literacy is the ability to understand and use money wisely. It includes knowing the value of coins and bills, counting money correctly, and solving problems that involve spending, saving, and making change.
- Knowing that a quarter is worth 25 cents.
- Counting a five-dollar bill and three one-dollar bills to find a total of $8.
- Deciding whether you have enough money to buy a toy that costs $12.50.
Financial literacy helps you make smart choices about money in everyday life.
Understand U.S. coins and bills
In the United States, money is made up of coins and bills. Each coin and bill has a specific value. Knowing these values is the first step in solving money word problems. A cent is the smallest unit of U.S. money. One hundred cents make one dollar.
- Penny = 1 cent ($0.01)
- Nickel = 5 cents ($0.05)
- Dime = 10 cents ($0.10)
- Quarter = 25 cents ($0.25)
- Half-dollar = 50 cents ($0.50)
- One-dollar bill = $1.00
- Two-dollar bill = $2.00
- Five-dollar bill = $5.00
- Ten-dollar bill = $10.00
- Twenty-dollar bill = $20.00
- Fifty-dollar bill = $50.00
- One-hundred-dollar bill = $100.00
When you write money amounts, use a dollar sign and a decimal point. For example, 3 dollars and 45 cents is written as $3.45. Amounts less than one dollar can be written with a dollar sign and decimal point, such as $0.75, or with a cent sign, such as 75¢.
Count money
To count money, start with the bills that have the greatest value. Then count the coins from greatest value to least value. This method helps you keep track and avoid mistakes. You can represent any amount of money using a decimal number. The digits to the left of the decimal point show dollars, and the two digits to the right show cents.
- You have a $10 bill, a $5 bill, two quarters, and three dimes. Start with $10 + $5 = $15. Then add $0.25 + $0.25 = $0.50, so $15.50. Then add $0.10 + $0.10 + $0.10 = $0.30, so $15.80. The total is $15.80.
- You have 3 quarters, 2 dimes, and 4 pennies. Count the quarters: 25, 50, 75. Count the dimes: 85, 95. Count the pennies: 96, 97, 98, 99. The total is 99 cents, or $0.99.
- You have 2 one-dollar bills, 1 quarter, and 3 nickels. That is $2.00 + $0.25 + $0.15 = $2.40.
When counting coins, it is helpful to group them by value. For example, stack all quarters together, then all dimes, and so on. Always write the dollar sign and decimal point when you record a money amount that includes dollars.
Add money
When you add money, you find the total of two or more amounts. Word problems often ask you to find a total. Look for key words such as total, altogether, in all, and combined. Always line up the decimal points before you add.
- Maya buys a notebook for $2.75 and a pen for $1.25. How much does she spend in all?
2.75+ 1.254.00
She spends $4.00. - A sandwich costs $4.50 and a juice costs $1.75. What is the total cost?
4.50+ 1.756.25
The total cost is $6.25. - You have $3.20 in your pocket and $2.85 in your backpack. How much money do you have altogether?
3.20+ 2.856.05
You have $6.05 altogether.
When adding money, write the numbers so the decimal points are directly under each other. Add the cents first, then the dollars. If the cents add up to 100 or more, regroup the extra cents as dollars.
Subtract money
When you subtract money, you find how much is left or how much more one amount is than another. You also subtract to make change. Making change means giving back the correct amount when someone pays more than the price of an item. Look for key words such as left, remain, change, and difference.
- Liam has $20.00. He buys a book for $12.50. How much money does he have left?
20.00− 12.507.50
He has $7.50 left. - Priya has $9.25. She spends $3.60. How much does she have left?
9.25− 3.605.65
She has $5.65 left.
- A bag of apples costs $3.40. Noah pays with a $5 bill. How much change should he get?
5.00− 3.401.60
He should get $1.60 in change. - An item costs $0.85. You pay with a $1 bill.
1.00− 0.850.15
The change is 15 cents.
Always line up the decimal points when subtracting money amounts. When you make change, count it back to the customer. Start with the coins and work up to the bills.
Compare money
Sometimes you need to compare two amounts of money to see which is greater or less. Use the symbols > (greater than), < (less than), and = (equal to). When comparing money, first compare the dollars. If the dollars are the same, compare the cents.
- $4.50 > $4.05 because 50 cents is more than 5 cents.
- $7.25 < $7.75 because 25 cents is less than 75 cents.
- $10.00 = 10 one-dollar bills because they have the same value.
- $6.30 < $6.80 because 30 cents is less than 80 cents.
The symbol always opens toward the greater amount. For example, in $4.50 > $4.05, the opening faces $4.50 because it is the greater amount.
Multiply money
When you multiply money, you find the total cost of equal groups or repeated purchases. Word problems often ask you to find the cost of several items that each cost the same amount. Look for key words such as each, every, and per.
- Emma buys 3 pencils. Each pencil costs $0.50. How much do the pencils cost in all?
0.50× 31.50
The pencils cost $1.50 in all. - Four friends each pay $2.25 for a ticket. What is the total cost?
2.25× 49.00
The total cost is $9.00.
- You buy 5 notebooks. Each notebook costs $1.20. How much do you spend?
1.20× 56.00
You spend $6.00. - A pack of markers costs $3.50. You buy 2 packs. How much do you spend?
3.50× 27.00
You spend $7.00.
When you multiply money, multiply the number of items by the cost of one item. Write the product with a dollar sign and a decimal point. If the product has only one digit after the decimal point, add a zero so there are always two digits for cents. For example, $7.5 is written as $7.50.
Solve two-step money problems
Some money word problems require more than one step. You may need to add first, then subtract. You may need to multiply first, then subtract. You may also need to add two amounts and then add a third amount. Read the problem slowly and decide what to do first. Write down the answer to each step so you can keep track and check your work.
- Jacob has $8.00. He earns $4.50 more. Then he buys a snack for $2.25. How much money does he have left?
First, add:
8.00+ 4.5012.50
Then subtract:
12.50− 2.2510.25
He has $10.25 left. - Ana has $6.75. She finds $1.25 in her coat pocket. Then she buys a book for $5.50. How much does she have left?
First, add:
6.75+ 1.258.00
Then subtract:
8.00− 5.502.50
She has $2.50 left.
- Emma buys 3 pencils. Each pencil costs $0.50. She pays with a $5 bill. How much change does she get?
First, multiply:
0.50× 31.50
Then subtract:
5.00− 1.503.50
She gets $3.50 in change. - You buy 4 juice boxes. Each juice box costs $1.25. You pay with a $10 bill. How much change do you get?
First, multiply:
1.25× 45.00
Then subtract:
10.00− 5.005.00
You get $5.00 in change.
- Maya buys a sandwich for $4.25, a juice for $1.50, and a cookie for $0.75. What is the total cost?
First, add:
4.25+ 1.505.75
Then add:
5.75+ 0.756.50
The total cost is $6.50. - You save $3.50 in January, $2.75 in February, and $4.25 in March. How much have you saved in all?
First, add:
3.50+ 2.756.25
Then add:
6.25+ 4.2510.50
You have saved $10.50 in all.
When a problem has more than one step, ask yourself: What do I need to find first? Then ask: What do I need to do next? Always check your answer by reading the problem again and making sure your answer makes sense.
Common Core alignment: CCSS.MATH.CONTENT.4.MD.A.2 – Use the four operations to solve word problems involving distances, intervals of time, liquid volumes, masses of objects, and money, including problems involving simple fractions or decimals, and problems that require expressing measurements given in a larger unit in terms of a smaller unit.
Notes for teachers
This resource is designed to provide clear explanations, examples, and practice for learners of different needs and levels of support. It may be used for whole-class instruction, guided practice, independent learning, review, homework, or additional reinforcement at home.