Solved Exercises on Money Word Problems

Master money calculations: addition, subtraction, making change, and budgeting through these 3 detailed exercises with step-by-step solutions.

Solution: Exercises 1 to 3
1 Addition Word Problems
Exercise 1
Emma bought a book for $3.45 and a notebook for $2.25. How much did she spend altogether?
Definition:

Money addition: Finding the total cost when purchasing multiple items

Addition method:
  1. Align dollars and cents in columns
  2. Add the cents column first
  3. Add the dollars column
  4. Carry over if needed
Step 1: Identify amounts

Book: $3.45, Notebook: $2.25

Step 2: Add cents

45¢ + 25¢ = 70¢

Step 3: Add dollars

$3 + $2 = $5

Step 4: Combine

$5 + 70¢ = $5.70

Item Price
Book $3.45
Notebook $2.25
Total $5.70
$5.70
Final answer:

Emma spent $5.70 altogether

Applied rules:

• Decimal alignment: Align dollar and cent values properly

• Column addition: Add cents first, then dollars

• Money notation: Include dollar sign in final answer

2 Making Change Problems
Exercise 2
James bought a toy for $4.85. He gave the cashier $10.00. How much change should he receive?
Definition:

Making change: Calculating the difference between money given and the cost of items

Step 1: Identify amounts

Cost: $4.85, Money given: $10.00

Step 2: Subtract

$10.00 - $4.85 = ?

Step 3: Borrow if needed

Since 0¢ < 85¢, borrow $1 from $10 → $9.00 + $1.00 = $9.00 + 100¢ = $9.100¢

Step 4: Complete subtraction

$9.100¢ - $4.85¢ = $5.15¢

$1
25¢
10¢
5¢
1¢
$5.15
Final answer:

James should receive $5.15 in change

Applied rules:

• Subtraction: Money given minus cost equals change

• Borrowing: When subtracting, borrow from higher denomination if needed

• Verification: Cost + Change should equal money given

3 Budget Word Problems
Exercise 3
Sarah has $20.00. She wants to buy a game for $12.75 and some candy for $3.50. Does she have enough money? If yes, how much will she have left?
Definition:

Budget problems: Determining if available money covers expenses and calculating remaining balance

Step 1: Identify available money

Sarah has: $20.00

Step 2: Calculate total expenses

Game: $12.75 + Candy: $3.50 = $16.25

Step 3: Compare with available money

$20.00 > $16.25, so yes, she has enough

Step 4: Calculate remaining money

$20.00 - $16.25 = $3.75

Available Money
$20.00
Expenses
$16.25
Remaining Money
$3.75
Yes, $3.75 left
Final answer:

Yes, Sarah has enough money. She will have $3.75 left after her purchases.

Applied rules:

• Comparison: Total expenses vs. available money

• Subtraction: Available money minus expenses equals remaining

• Budgeting: Plan spending within available funds

Money Concepts and Vocabulary
💰
U.S. Currency Values
1¢
5¢
10¢
25¢
$1
Key definitions:

Cent (¢): Smaller unit of currency (100 cents = 1 dollar)

Dollar ($): Primary unit of currency

Change: Money returned when payment exceeds cost

Expense: Money spent on goods or services

Money Calculation Methods:
  1. Addition: Total cost of multiple items
  2. Subtraction: Making change or finding remaining money
  3. Multiplication: Cost of multiple identical items
  4. Division: Sharing money equally
Tip 1: Always align decimal points when adding or subtracting money.
Tip 2: Count up from the smaller amount to verify subtraction.
Tip 3: Estimate your answer before calculating to check reasonableness.
Common errors: Misaligning decimals, forgetting dollar signs, miscalculating change.
Financial literacy: These skills apply to real-world shopping and budgeting.
Money Conversion Rules:

• 100 cents = 1 dollar

• 4 quarters = 1 dollar

• 10 dimes = 1 dollar

• 20 nickels = 1 dollar

Word Problem Solving Strategies
🧠
Problem-Solving Steps
Key definitions:

Word problem: A mathematical question presented in narrative form

Keywords: Words that indicate operations (more, total, less, change, etc.)

Strategy: A systematic approach to solving problems

5-Step Problem-Solving Method:
  1. Read: Carefully read the entire problem
  2. Identify: Find what is being asked and important information
  3. Plan: Decide which operation(s) to use
  4. Solve: Carry out the calculation
  5. Check: Verify the answer makes sense
Keyword Tip 1: "Total," "altogether," "sum" suggest addition.
Keyword Tip 2: "Change," "left," "difference" suggest subtraction.
Keyword Tip 3: "Each," "per," "times" suggest multiplication.
Estimation: Round numbers to estimate the answer before calculating.
Verification: Check your answer by using the opposite operation.
Common Keywords by Operation:

• Addition: total, sum, altogether, combined, in all

• Subtraction: difference, change, left, remaining, spent

• Multiplication: each, per, times, product, groups of

• Division: shared equally, divided among, per person

Additional Practice Problems
✏️
More Money Word Problems
Problem 1
Maria bought 3 apples at $0.75 each. How much did she spend?
Problem 2
Tom paid $20.00 for groceries that cost $14.63. How much change did he receive?
Problem 3
Lisa has $15.00. She wants to buy a book for $8.95 and a pen for $2.50. Will she have enough? How much will remain?
Practice Tip 1: Use real coins and bills to visualize problems.
Practice Tip 2: Create your own money word problems based on real purchases.
Practice Tip 3: Practice mental math for common money calculations.
Real-world connection: These skills help with shopping, budgeting, and financial planning.
Advanced concept: Understanding money leads to learning about saving and investing.
Practice Strategies:

• Solve problems in multiple ways to verify answers

• Work with partners to discuss different approaches

• Apply money concepts to real shopping scenarios

Detailed Summary: Money Word Problems
Core Concepts:

Money: Currency used to purchase goods and services, measured in dollars and cents

Word Problems: Mathematical questions presented in narrative form requiring interpretation and calculation

Financial Literacy: Understanding how to manage money effectively

Essential Rules and Laws:
  • Decimal Alignment Rule: Always align decimal points when adding or subtracting money
  • Conversion Rule: 100 cents = 1 dollar (and vice versa)
  • Change Rule: Change = Money Given - Cost of Items
  • Budget Rule: Expenses must not exceed available funds
Step-by-Step Method: Read → Identify → Plan → Solve → Check
Keyword Recognition: "Total" means add, "change" means subtract
Verification Strategy: Use inverse operations to check answers
Simple Example: $1.25 + $0.75 = $2.00
Intermediate Example: $10.00 - $3.45 = $6.55
Advanced Example: Budget of $25.00 - (Item A $8.50 + Item B $12.75) = $3.75 remaining
Common Pitfalls and Solutions:

• Pitfall: Misaligning decimals → Solution: Write numbers in columns

• Pitfall: Forgetting to include dollar signs → Solution: Always label final answers

• Pitfall: Miscalculating change → Solution: Verify by adding change to cost

• Pitfall: Not checking reasonableness → Solution: Estimate first

Key Takeaways for Memorization:
  • Always align decimal points when adding/subtracting money
  • Change = Money Given - Cost of Items
  • Use keywords to identify which operation to perform
  • Estimate your answer first to check reasonableness
  • Verify your answer using the opposite operation

Questions & Answers

Question: My students struggle with knowing whether to add or subtract in money word problems. How can I help them identify the correct operation?

Answer: Here are effective strategies to help students identify the correct operation:

  • Keyword identification: Teach specific action words that indicate operations
  • Addition keywords: total, altogether, sum, combined, in all, spent
  • Subtraction keywords: change, left, remaining, difference, less than, spent from
  • Context clues: Are we combining amounts (add) or finding what's left (subtract)?

Create anchor charts with these keywords and practice sorting problems by operation. Use manipulatives to physically represent the actions described in the problems.

Question: When making change, I sometimes get confused about borrowing. Can you explain how to handle subtraction when the cents part is smaller?

Answer: Great question! When subtracting money and the cents part of the first number is smaller:

  • Borrow from the dollar: If you have $5.25 - $2.40, since 25¢ < 40¢, borrow $1 from $5
  • Convert the borrowed dollar: $1 = 100¢, so $5.25 becomes $4.125¢
  • Now subtract: $4.125¢ - $2.40¢ = $2.85¢

Think of it like exchanging: if you need more cents, trade one dollar for 100 cents. Then you'll have enough cents to subtract.

You can check: $2.40 + $2.85 = $5.25 ✓

Question: How can I make money word problems more engaging and relevant for my child?

Answer: Here are strategies to make money word problems engaging:

  1. Use real-world contexts: Create problems about things your child likes (toys, snacks, games)
  2. Hands-on materials: Use actual coins and bills to work through problems
  3. Shopping scenarios: Practice at the grocery store or toy shop
  4. Role-playing: Act out being a customer and cashier

Connect problems to your child's interests and daily life. Let them create their own word problems about things they want to buy. This makes the math meaningful and memorable.