Word Problems on Money for Class 3 - Grade 3

Learn about solving word problems on money with 5 detailed exercises for 3rd grade math students.

Money Word Problems: Exercises 1 to 3
1 Addition Problem
Exercise 1
Sarah has $12. Her mom gives her $8 more. How much money does Sarah have now?
Definition:

Addition word problem: A problem that requires adding money amounts together

Problem-solving method:
  1. Read the problem carefully
  2. Identify the money amounts involved
  3. Determine what operation to use
  4. Add the amounts together
  5. Write the answer with the dollar sign
Starting Amount
$12
Additional Amount
$8
Total
$20
Step 1: Identify starting amount

Sarah starts with $12

Step 2: Identify additional amount

Her mom gives her $8 more

Step 3: Determine operation needed

We need to add because money is being added

Step 4: Add the amounts

$12 + $8 = $20

Step 5: Write the final answer

Sarah has $20 in total

Sarah has $20 in total
Final answer:

Sarah has $20 in total.

Applied rules:

• Addition: When money is added to existing amount

• Unit consistency: Always include dollar signs in answer

• Problem comprehension: Identify key information in word problems

2 Subtraction Problem
Exercise 2
Tom had $25. He bought a book for $13. How much money does Tom have left?
Definition:

Subtraction word problem: A problem that requires subtracting money amounts

Starting Amount
$25
Amount Spent
$13
Remaining
$12
Step 1: Identify starting amount

Tom starts with $25

Step 2: Identify amount spent

He spent $13 on a book

Step 3: Determine operation needed

We need to subtract because money is being taken away

Step 4: Subtract the amounts

$25 - $13 = $12

Step 5: Write the final answer

Tom has $12 left

Tom has $12 remaining
Final answer:

Tom has $12 left after buying the book.

Applied rules:

• Subtraction: When money is spent or taken away

• Money management: Keep track of remaining money

• Problem identification: Words like "left," "remaining," or "spent" indicate subtraction

3 Multiplication Problem
Exercise 3
Emily buys 4 stickers. Each sticker costs $2. How much does she spend in total?
Definition:

Multiplication word problem: A problem that requires multiplying quantity by unit price

Number of Items
4
Price per Item
$2
Total Cost
$8
Step 1: Identify number of items

Emily buys 4 stickers

Step 2: Identify price per item

Each sticker costs $2

Step 3: Determine operation needed

We need to multiply because we're finding total cost

Step 4: Multiply quantity by price

4 × $2 = $8

Step 5: Write the final answer

Emily spends $8 in total

Emily spends $8 in total
Final answer:

Emily spends $8 in total for 4 stickers.

Applied rules:

• Multiplication: When buying multiple items at the same price

• Total cost: Number of items × Price per item

• Pattern recognition: Words like "each," "per," or "times" suggest multiplication

Money Problem Solving Concepts
Total = Starting Amount + Additions - Subtractions
Money Calculation Formula
➕
Addition
Adding money
➖
Subtraction
Spending money
✖️
Multiplication
Buying multiples
❓
Problem
Solving
➕
ADD
When money is added
➖
SUBTRACT
When money is spent
✖️
MULTIPLY
For multiple items
🔍
READ CAREFULLY
Understand the problem
Addition
+ More money
Gets more
Subtraction
- Less money
Spends money
Multiplication
× Multiple items
Total cost
Money word problem rule: Look for keywords that indicate the operation needed.
Always include units: Write dollar signs ($) in your answers.
Money Word Problems: Exercises 4 to 5
4 Mixed Operations Problem
Exercise 4
Jake had $30. His dad gave him $15 for his birthday. Then he spent $22 on a video game. How much money does Jake have now?
Definition:

Mixed operations problem: A problem requiring multiple mathematical operations

Starting
$30
Added
$15
Spent
$22
Final
$23
Step 1: Identify starting amount

Jake starts with $30

Step 2: Add money received

His dad gave him $15

$30 + $15 = $45

Step 3: Subtract money spent

He spent $22 on a video game

$45 - $22 = $23

Step 4: Calculate final amount

After receiving and spending, Jake has $23

Step 5: Write the final answer

Jake has $23 now

Jake has $23 remaining
Final answer:

Jake has $23 remaining after receiving money and making a purchase.

Applied rules:

• Sequential operations: Solve step by step in order of events

• Order matters: Follow the sequence described in the problem

• Check work: Verify calculations at each step

5 Multi-step Problem
Exercise 5
Lisa saved $18 from her allowance. She earned $7 from helping her mom. She wants to buy 3 notebooks that cost $5 each. Does she have enough money? How much will she have left or how much more does she need?
Definition:

Multi-step problem: A problem requiring several calculations to solve

Saved
$18
Earned
$7
Total Money
$25
Cost
$15
Step 1: Calculate total money available

Saved: $18 + Earned: $7 = $25

Step 2: Calculate total cost of notebooks

3 notebooks × $5 each = $15

Step 3: Compare money available with cost

$25 (available) vs $15 (cost)

Step 4: Determine if she has enough

Since $25 > $15, she has enough money

Step 5: Calculate remaining money

$25 - $15 = $10 left over

Step 6: Write the final answer

Yes, Lisa has enough money and will have $10 left

Lisa has enough money and will have $10 remaining
Final answer:

Yes, Lisa has enough money. She will spend $15 and have $10 left over.

Applied rules:

• Organize information: Separate what you have from what you need

• Compare amounts: Check if available money covers expenses

• Multiple questions: Answer each part of the problem completely

Money Word Problems Guide: Problem-Solving Strategies
Read Carefully → Identify Numbers → Choose Operation → Calculate → Check Answer
Problem-Solving Steps
Key definitions:

Word problem: A math problem presented in sentence form

Money word problem: A word problem involving dollars and cents

Keywords: Words that indicate which math operation to use

Total: The final amount after all operations

Remainder: What's left after subtracting

Problem-Solving Method:
  1. Read: Read the problem carefully twice
  2. Find: Identify all numbers and what they represent
  3. Think: Decide what operation to use (+, -, ×)
  4. Solve: Do the math calculation
  5. Check: Make sure your answer makes sense
Tip 1: Circle or underline important numbers in the problem.
Tip 2: Look for clue words: "more" (add), "left" (subtract), "each" (multiply).
Tip 3: Draw pictures or use objects to help visualize the problem.
Tip 4: Always write the dollar sign ($) in your answer.
Clue words for addition: total, altogether, combined, more, increased by.
Clue words for subtraction: left, remaining, difference, decreased by, spent.
Money Word Problem Rules:

• Always read the entire problem before solving

• Identify what the problem is asking for

• Look for clue words that indicate the operation needed

• Show your work step by step

• Check that your answer makes sense in the context of the problem

Questions & Answers

Question: I always get confused about whether to add or subtract in money word problems. How can I tell which one to use?

Answer: Great question! Look for clue words that tell you what to do:

Words that mean ADDITION:

  • "more" - "She got $5 more"
  • "added" - "He added $10 to his savings"
  • "total" - "What is the total amount?"
  • "altogether" - "How much do they have altogether?"

Words that mean SUBTRACTION:

  • "left" - "How much money does she have left?"
  • "spent" - "He spent $8 on candy"
  • "remaining" - "How much is remaining?"
  • "cost" - "The item cost $6"

Also think about whether the person is getting more money (add) or spending money (subtract).

Question: How can I help my child practice money word problems at home?

Answer: Here are practical ways to practice at home:

  • Real-life scenarios: "You have $10, and apples cost $2 each. How many can you buy?"
  • Shopping games: Give them play money and create a pretend store
  • Allowance problems: "If you save $3 each week, how much will you have in 4 weeks?"
  • Cooking math: "If cookies cost $0.50 each and you want 6, how much will that cost?"
  • Story problems: Create fun stories involving money transactions

Use real coins and bills for hands-on practice. Start with simple problems and gradually increase difficulty.

Question: What are some common mistakes students make with money word problems?

Answer: Common mistakes include:

  • Rushing to calculate: Not reading the problem carefully
  • Wrong operation: Adding when they should subtract, or vice versa
  • Missing steps: In multi-step problems, not solving in the correct order
  • Forgetting units: Not including the dollar sign ($) in the answer
  • Misreading numbers: Confusing similar-looking digits
  • Not checking: Not verifying if the answer makes sense

Teach students to slow down, identify key information, and always check their work by asking "Does this answer make sense?"