Solved Exercises on Money Word Problems in Grade 3

Master money word problems: counting coins, making change, addition and subtraction with money through these 5 detailed exercises.

Solution: Exercises 1 to 3
1 Counting Coins
Exercise 1
Sarah has 3 quarters, 2 dimes, 1 nickel, and 4 pennies. How much money does she have?
Definition:

Coin Values: Penny = $0.01, Nickel = $0.05, Dime = $0.10, Quarter = $0.25

Counting Method:
  1. Identify the value of each type of coin
  2. Multiply the number of each coin by its value
  3. Add all amounts together
Quarters
3 × $0.25 = $0.75
Dimes
2 × $0.10 = $0.20
Nickel
1 × $0.05 = $0.05
Pennies
4 × $0.01 = $0.04
Step 1: Calculate value of quarters

3 quarters × $0.25 = $0.75

Step 2: Calculate value of dimes

2 dimes × $0.10 = $0.20

Step 3: Calculate value of nickel

1 nickel × $0.05 = $0.05

Step 4: Calculate value of pennies

4 pennies × $0.01 = $0.04

Step 5: Add all amounts

$0.75 + $0.20 + $0.05 + $0.04 = $1.04

Sarah has $1.04
Final answer:

Sarah has $1.04

Applied rules:

• Counting coins: Multiply quantity by value

• Addition: Align decimal points when adding money

• Place value: Remember cents (hundredths) and dollars (ones)

🪙
3 × $0.25 = $0.75
Quarters
🪙
2 × $0.10 = $0.20
Dimes
🪙
1 × $0.05 = $0.05
Nickel
🪙
4 × $0.01 = $0.04
Pennies
2 Making Change
Exercise 2
Tom buys a toy for $3.75. He pays with a $5 bill. How much change should he receive?
Definition:

Change Calculation: Change = Amount Paid - Cost of Item

Amount Paid
$5.00
Cost of Item
$3.75
Change
$1.25
Step 1: Write the subtraction problem

$5.00 - $3.75 = ?

Step 2: Subtract the cents

Since 0 cents < 75 cents, borrow 1 dollar = 100 cents

100 cents - 75 cents = 25 cents

Step 3: Subtract the dollars

After borrowing: $4 - $3 = $1

Step 4: Combine dollars and cents

$1 + $0.25 = $1.25

Tom should receive $1.25 in change
Final answer:

Tom should receive $1.25 in change

Applied rules:

• Subtraction: Borrow from higher place value when needed

• Change formula: Amount paid minus cost equals change

• Regrouping: Convert dollars to cents when necessary

$5
→
$3.75
+
$1.25
3 Adding Money Amounts
Exercise 3
Maya earned $4.25 on Monday and $2.85 on Tuesday. How much money did she earn altogether?
Definition:

Adding Money: Align decimal points and add like whole numbers

Monday
$4.25
Tuesday
$2.85
Total
$7.10
Step 1: Align decimal points vertically

$4.25

+ $2.85

Step 2: Add cents column

5 cents + 5 cents = 10 cents (write 0, carry 1)

Step 3: Add tenths column

2 tenths + 8 tenths + 1 carried = 11 tenths (write 1, carry 1)

Step 4: Add dollars column

$4 + $2 + $1 carried = $7

Step 5: Combine results

$7.10

Maya earned $7.10 altogether
Final answer:

Maya earned $7.10 altogether

Applied rules:

• Decimal alignment: Always line up decimal points

• Carrying: When sum exceeds 9, carry to next column

• Place value: Keep track of dollars and cents separately

📅
$4.25
Monday
+
+
Plus
📅
$2.85
Tuesday
💰
$7.10
Total
Money Concepts and Rules
Change = Paid - Cost
Making Change Formula
Coin Values
Penny = $0.01
Penny = 1 cent
Coin Values
Nickel = $0.05
Nickel = 5 cents
Coin Values
Dime = $0.10
Dime = 10 cents
Coin Values
Quarter = $0.25
Quarter = 25 cents
Key definitions:

Money: Medium of exchange for goods and services

Cents: Smallest unit of currency (100 cents = $1)

Dollars: Standard unit of currency ($1 = 100 cents)

Complete methodology:
  1. Read the problem carefully: Identify what you need to find
  2. Identify given information: Note all money amounts and operations
  3. Choose the operation: Addition, subtraction, or counting
  4. Solve step by step: Follow proper money calculation procedures
  5. Check your answer: Verify with estimation or inverse operation
Tip 1: Always align decimal points when adding or subtracting money.
Tip 2: Draw coins or write amounts to visualize the problem.
Tip 3: When making change, count up from the cost to the amount paid.
Tip 4: Practice with real coins to build understanding.
Common errors: Misaligning decimals, forgetting to carry, confusing coin values.
Practice areas: Counting mixed coins, making change, comparing amounts.
Formulas to know by heart:

• Change = Amount Paid - Cost

• Total = Sum of all amounts

• Comparison: Which is greater/less?

Total = $0.01 + $0.05 + $0.10 + $0.25
Adding Coin Values
Solution: Exercises 4 to 5
4 Comparing Money Amounts
Exercise 4
Alex has $6.40 and Ben has $6.04. Who has more money and by how much?
Definition:

Comparing Money: Compare dollars first, then cents if dollars are equal

Alex
$6.40
Ben
$6.04
Difference
$0.36
Step 1: Compare dollars

Alex: $6, Ben: $6 → Dollars are equal

Step 2: Compare cents

Alex: 40 cents, Ben: 04 cents → 40 > 4

Step 3: Calculate difference

$6.40 - $6.04 = $0.36

Step 4: State the answer

Alex has more money by $0.36

Alex has more money by $0.36
Final answer:

Alex has more money by $0.36

Applied rules:

• Comparison: Compare dollars first, then cents

• Subtraction: Align decimals when finding difference

• Place value: Understand that $6.40 ≠ $6.04

👤
$6.40
Alex
>
>
More Than
👤
$6.04
Ben
⚖️
$0.36
Difference
5 Multi-step Problem
Exercise 5
Emma bought a book for $4.50 and a pencil for $0.75. She gave the cashier a $10 bill. How much change did she receive?
Definition:

Multi-step problem: Requires multiple calculations to solve

Book
$4.50
Pencil
$0.75
Total Cost
$5.25
Change
$4.75
Step 1: Find total cost

$4.50 + $0.75 = $5.25

Step 2: Calculate change

$10.00 - $5.25 = $4.75

Step 3: Verify calculation

$5.25 + $4.75 = $10.00 ✓

Emma received $4.75 in change
Final answer:

Emma received $4.75 in change

Applied rules:

• Order of operations: Add costs first, then subtract from payment

• Multi-step: Break complex problems into simpler parts

• Verification: Check that change + cost = amount paid

📚
$4.50
Book
✏️
$0.75
Pencil
💰
$5.25
Total Cost
💵
$10.00
Paid
🪙
$4.75
Change
Money Word Problems Laws, Methods, Rules, and Definitions
Change = Paid - Cost
Making Change
Key definitions:

Money: Currency used to buy goods and services

Coins: Small denomination currency (pennies, nickels, dimes, quarters)

Bills: Paper currency (ones, fives, tens, twenties, etc.)

Decimal notation: Using $.¢ to represent dollars and cents

Complete methodology:
  1. Read carefully: Identify what the problem asks for
  2. Find important information: Note all money amounts and relationships
  3. Decide on operation: Determine if you need to add, subtract, or compare
  4. Solve systematically: Use proper money calculation techniques
  5. Check your work: Verify with estimation or reverse calculation
Tip 1: Draw pictures of coins to visualize problems.
Tip 2: Remember that $1.00 = 100¢, so $1.25 = 125¢.
Tip 3: When making change, think: "What do I add to the cost to get the amount paid?"
Tip 4: Always write money amounts with the $ symbol and two decimal places.
Common errors: Misplacing decimal points, confusing coin values, forgetting to carry.
Real-world skills: Shopping, budgeting, making change, comparing prices.
Money Math Rules:

• Always align decimal points when adding/subtracting money

• $1.00 = 100 cents

• Change = Amount Paid - Cost of Items

• When comparing, compare dollars first, then cents

• Always include $ symbol and decimal in final answers

4 quarters = $1.00
Coin Equivalents
🪙
100¢ = $1.00
100 cents
🪙
4 quarters = $1.00
4 quarters
🪙
10 dimes = $1.00
10 dimes
🪙
20 nickels = $1.00
20 nickels

Questions & Answers

Question: I sometimes get confused about whether to add or subtract when solving money word problems. How do I know which operation to use?

Answer: Great question! Here are key words to look for:

  • Addition: "total," "altogether," "in all," "combined," "more," "earned," "received"
  • Subtraction: "change," "left," "remaining," "spent," "cost," "difference," "less"
  • Comparison: "more than," "less than," "greater," "fewer," "difference"

Examples:

  • "How much money does he have in all?" → Addition
  • "How much change should she receive?" → Subtraction
  • "Who has more money?" → Subtraction to find difference

Always read the question carefully to determine what it's asking for!

Question: When I make change, I sometimes forget to carry or borrow correctly. Do you have any tips?

Answer: Here are some helpful strategies for carrying and borrowing:

  • When adding: If cents add up to 10 or more, carry the extra to the dollar column
  • When subtracting: If you need to subtract a larger number from a smaller one in any column, borrow from the next higher column
  • Visual aid: Write out the problem vertically to keep columns aligned
  • Estimation: Before calculating, estimate the answer to catch major errors

Example: For $5.00 - $3.75, since 0 < 5 in the cents column, borrow 1 dollar = 100 cents, then subtract: 100 - 75 = 25 cents.

Practice with real coins to build confidence!

Question: Why is it important to align decimal points when working with money?

Answer: Aligning decimal points is crucial because:

  • Place value: It ensures you're adding/subtracting the same units (dollars with dollars, cents with cents)
  • Accuracy: Prevents misalignment errors that could lead to incorrect answers
  • Standard: It's the accepted mathematical format for working with decimal numbers

Example of why alignment matters:

Correct: $4.25 + $2.85 = $7.10

Incorrect: $4.25 + $2.85 = $6.10 (if not aligned properly)

Think of decimal points as "glue" that keeps dollars and cents in their proper columns!