NCFE Entry

Level 3
Certificate in
Essential maths
in Everyday
Life
(610/0655/5)

Unit 6: Calculating with money

(K/650/1893)

Learner Workbook
Name
Tutor

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Unit 06 – Calculating with money
Overall learning outcomes
By the end of this unit, you will:
1. Be able to write and add amounts of money

2. Be able to subtract sums of money

3. Be able to calculate and estimate costs

You will be able to:

1.1 Write amounts of money using correct money notation
1.2 Add amounts of money
1.3 Check answers to addition with and without a calculator
2.1 Subtract amounts of money
2.2 Check answers to subtraction, with and without a calculator
3.1 Work out costs for simple budgets
3.2 Estimate costs using rounding

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Learning outcomes

LO1 - Be able to write and add amounts of money

Key Terms

Coins
Notes
Money
Decimal
Pound
Pence
Amount
Add
Sum
Total

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AC1.1 - Write amounts of money using correct money notation

AC1.2 - Add amounts of money

AC1.3 - Check answers to addition with and without a calculator

It is important that we can work out calculations with money as we use it

every day. When we go into shops, we often need to add up the cost of
a few items so we can check that we have enough money with us to pay
at the till!

In the UK, the currency is pounds and pence. The sign used for pence is
p and the sign used for pounds is £. The main coins in use throughout
the UK are shown below:

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There are 100 pence in a pound, and we can write money as either
pence or pounds.
For example, if we are parking our car and a ticket cost two pounds and
twenty-five pence, this can be written as £2.25 or 225p.
When representing money using pounds, the decimal point separates
the pound from the pence.
In some cases, such as at a petrol station, you will see money
represented as pence (even if it is above one pound).

As there are 100 pence in a pound, we can:

 Convert from pounds to pence by multiplying by 100.
 Convert from pence to pounds by dividing by 100.

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It’s important that we’re able to add different amounts of money together.
This can be particularly useful when we’re buying multiple items, or
when we need to work out the total cost of different bills.
Without a calculator, we would add these amounts by using column
addition.

For example, Jacob has the following bills in his bank statement:
11/12 Energy £218.33
18/12 Water £39.12
23/12 Council Tax £180.00
Calculate the total amount of the bills.

To start solving this problem, we need to begin splitting the amounts into
their hundreds, tens, units, tenths and hundredths.
2 1 8 . 3 3

3 9 . 1 2

+ 1 8 0 . 0 0

Remember to leave plenty of space in between the digits of the numbers

so that you can note down when carrying amounts and if there isn’t a
digit for the number (i.e. 0 pence in £180) show this as a 0.
Now that the amounts have been split into columns, we can begin
adding each column by starting with the hundredths.
2 1 8 . 3 3

3 9 . 1 2

+ 11 81 0 . 0 0

4 3 7 . 4 5

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Remember to place a decimal point in line with the other decimal points.
As we can see from the calculation, the total amount of the bills is
£437.45

We can check this calculation by using a calculator:

218.33 + 39.12 + 180 = 437.45

Alternatively, using non-calculator methods we can use estimation to

check the answer by rounding each value to the nearest £10.
To round £218.33 to the nearest £10, we need to identify whether this is
closer to £210 or £220. We can use a number line to do this:

£210 £218.33 £220

We can see from the number line that £218.33 is closer to £220 than
£210 so we can round this to £220.
We can repeat this process for £39.12 (£180 is already to the nearest
£10) to find an estimate of:
£220 + £40 + £180 = £440

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Practical Task AC1.2

Write a list of things you pay for or buy regularly (i.e. shopping items,
bus fares).

Find the total amount of those payments using column addition.

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Practice - AC1.1, AC1.2 and AC1.3

1. Change the following amounts from pence to pounds:

a) 506p = £__________

b) 1007p = £__________

c) 274p = £__________

d) 682p = £__________

e) 25p = £__________

2. Change the following amounts from pounds to pence:

a) £6.06 = __________p

b) £10.07 = __________p

c) £2.53 = __________p

d) £91.28 = __________p

e) £7.90 = __________p

f) £0.10 = __________p

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3. Represent the following amounts as pounds:
a) Two pound thirty-seven pence = £__________

b) Eighty pound and fifty-five pence = £__________

c) Seventy-two pence = £__________

d) Thirty pound and twenty pence = £__________

e) Ten pound and five pence = £__________

4. Calculate the total of the following calculations:

a) 98p + £24.57

Answer: £__________

b) £46.57 + 56p

Answer: £__________

c) £24.56 + £31.27

Answer: £__________

d) £111.17 + £93.30

Answer: £__________

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5. Mya receives the following receipt:

a) Using a column addition, check the total amount and show your
working below.

b) Using a calculator, check the total amount and show your answer
below.

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6. Tina is moving into a new flat and buys the following items.

a) Use column addition to work out the total cost and show your
workings below.

b) Use a calculator to check your answer and show your result below.

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7. Anita is planning a trip to London. She pays £70.49 in train fare and
£300.10 for her hotel stay.

a) Calculate the total cost of the trip using column addition. Show your
workings below.

b) Check your answer by using a calculator.

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Learning outcomes

LO2 - Be able to subtract sums of money

Key Terms

Coins
Notes
Money
Decimal
Pound
Pence
Amount
Subtract
Difference

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AC2.1 - Subtract amounts of money

AC2.2 - Check answers to subtraction, with and without a calculator

We need to know how to subtract different amounts of money in

everyday life.

Examples of this include checking how much change we receive

following a transaction or knowing how much bank balance you have
remaining following a purchase.

We can use column subtraction to calculate the amount following a

subtraction calculation.

For example, Raj has £15.20, and buys a ticket to a film for £7.99. How
much does he have left?

To start solving this problem, we need to begin splitting the amounts into
their tens, units, tenths and hundredths.

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 1 5 . 2 0

- 7 . 9 9

Remember to leave plenty of space in between the digits of the numbers

so that you can note down when carrying amounts and if there isn’t a
digit for the number (i.e. 0 hundredths in £15.20) show this as a 0.
Now that the amounts have been split into columns, we can begin
subtracting each column by starting with the hundredths.
10 514 . 211 10

- 7 . 9 9

0 7 . 2 1

Remember to place a decimal point in line with the other decimal points.
As we can see from the calculation, the total amount of the bills is £7.21

We can check this calculation by using a calculator: 15.2 – 7.99 = 7.21

Alternatively, using non-calculator methods we can use estimation to

check the answer by rounding each value to the nearest £1:
£15 - £8 = £7

Or, we can add the amount we’ve found to the amount we subtracted:
7 . 2 1

+ 71 . 91 9

1 5 . 2 0

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Practice – AC2.1 and AC2.2

1. Jason buys a new dining table for £420 and puts a deposit down for
£50.

How much money is left to pay? Use column subtraction and show your
workings below.

Answer: £__________

2. Jordan buys a new carpet for her living room for £175 using a deposit of
£40. How much does she have to pay off? Use column subtraction and
show your workings below.

Answer: £__________

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3. Hetti buys a new jumper for £16.60. She pays using a £20 note.

a) How much change does Hetti receive?

Answer: £__________

b) Check your answer by adding the value to £16.60. Show your

workings below.

4. Lena bought an art print for £25.38 and pays with a £50 note.
a) How much change does Lena receive?

Answer: £__________

b) Check your answer by adding the value to £25.38. Show your

workings below.

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Learning outcomes

LO3 - Be able to calculate and estimate costs

Key Terms

Coins
Notes
Money
Decimal
Pound
Pence
Amount
Budget
Estimate

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AC3.1 - Work out costs for simple budgets

AC3.2 - Estimate costs using rounding

Budgets and estimation are skills that are used in everyday life when you
are buying several items so you can check the cost.

We can use rounding to estimate the cost of a shopping list or the cost
of different items which can be a useful skill when working with a budget.

For example, John has £20 to spend on his shopping. He buys the items
below:

Bread £1.45
Chicken £3.55
Wine £7.60
Milk £1.40
Butter £2.10
Ham £1.80

Use estimation to find out if John has enough money in his budget.

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We can estimate by rounding each item to the nearest £1. We can start
solving the problem by rounding each item.

To round £1.25 to the nearest £1, we need to identify if £1.45 is closer to

£1 or £2. Start by placing the £1 and £2 either side of £1.45 on a number
line:

£1 £1.25 £2

We can see that £1.45 is closer to £1 on the number line. We can repeat
this process for the other items on the shopping list to find the following
rounded totals:

Bread £1.00
Chicken £4.00
Wine £8.00
Milk £1.00
Butter £2.00
Ham £2.00

We can then add each item to find the total estimation:

1 + 4 + 8 + 1 + 2 + 2 = 18 or £18.00

From our estimation, we can state that John has enough money to pay
for all of the items and we can check this using a calculator (£17.90).

Practical Task AC3.1 and AC3.2

Next time that you are food shopping, try to estimate the cost of your
shopping by rounding to the nearest £1 to check that you have enough
money available.

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Practice – AC3.1 and AC3.2

1. Wes is buying breakfast. Round each of the items below to the nearest
amount.

Item Cost Nearest 10p Nearest £1

Tomatoes £1.76

Bread £1.29

Mushrooms £0.76

Eggs £2.96

Orange juice £1.82

2. Jun is employed as an apprentice and earns a monthly salary of £850.

He has set a budget of £100 for petrol each month, and so far, he has
the following transactions:

Item Cost

Petrol £40.01

Petrol £24.97

Petrol £19.00

Estimate how much money Jun has left by rounding to the nearest £1

Estimate cost: £__________

Budget remaining: £__________

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3. Lucy and Ahmed are celebrating their first wedding anniversary.

They are planning a city-break to Amsterdam, and have the following

costs:

Item Cost

Flights £179.45

Hotel £278.19

The couple have a budget of £800 for the trip. Estimate the cost of the
above to the nearest £1 to find out how much the couple have left for
other activities.

Estimate: £__________

Budget remaining: £__________

4. Jo has the following expenses for work:

Item Cost

Coffee £3.63

Lunch £4.27

Bus Ticket £2.95

Jo has an expense budget of £40 for her trip. Estimate the cost of the
above items to the nearest 10p to find out the total amount, and then
use this to find out how much Joanne has left of her budget.

Estimate: £__________

Budget remaining: £__________

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Knowledge check

1. Change the following amounts to the shown units:

a) 211p = £__________

b) 2004p = £__________

c) £5.63 = __________p

d) 865p = £__________

e) £2.80 = __________p

f) 921p = £__________

g) 25p = £__________

h) £0.80 = __________p
2. Sophia is food shopping. Round each of the items below to the
nearest amount.

Item Cost Nearest 10p Nearest £1

Milk £1.35

Yoghurt £3.11

Bananas £0.87

Orange juice £2.13

Dog food £5.75

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3. Marcel buys a new car for £12,000 using a deposit of £1,200. How
much does he have to pay off? Use column subtraction and show
your workings below.

Answer: £__________

4. Represent the following amounts as pounds:

a) Six pound forty-five pence = £__________

b) Ten pound and eighty-nine pence = £__________

c) Thirty-seven pence = £__________

5. Savannah is planning a trip to Spain. She pays £410.49 for her hotel
stay and £164.10 for her flights.

a) Calculate the total cost of the trip using column addition. Show
your workings below.

b) Check your answer by using a calculator or estimation. Show

your workings below.

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6. Franz is planning a meal for his partner’s birthday.

The meal costs the following amount and Franz wants to work out
how much of his budget he has remaining:

Item Cost

Steak and Fries £32.85

Sea Bass and New £24.65

Potatoes
2 x Wines £15.10

Franz has a budget of £100 for the meal. Estimate the cost of the
above to the nearest £1 to find out how much Franz has left.

Estimate: £__________

Budget remaining: £__________

7. Gary and Judith bought an antique clock for £40.12 and pay with a
£50 note.
a) How much change do they receive? Use column subtraction and
show your workings below

Answer: £__________

b) Check your answer by estimating to the nearest 10p. Show your

working below.

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