How do I find change?

Take the price away from the money you gave.

Why do some amounts have different coin combinations?

Because coins add up to the same value, such as 10p + 10p = 20p.

How do I write pounds and pence?

Use £ for whole pounds, like £5, or p for pence, like 50p. Do not use both together.

Year 2 money lesson to download as PDF

This Year 2 money lesson is written for pupils aged 6-7 and follows the National Curriculum. In short, it shows you how to add and subtract money, find change and solve simple problems in pounds and pence. Before you start, it helps to revise fractions: thirds, quarters and halves and measuring length, mass and capacity, because this lesson builds on them.

Table of Contents

Year 2 money lesson: what you will learn

Hello, I am Otto! We use money every day to buy snacks, toys and bus tickets. In this chapter you learn the coins and notes of the United Kingdom. You count coins, make amounts in different ways, add money and work out change.

Starter activity

Set up a pretend shop at home with five items: a pencil for 20p, a rubber for 15p, a notebook for 50p, a ruler for 30p and a sharpener for 10p. Give your friend some coins and ask them to buy two things. Which coins do they give you? Do they need any change?

Pounds and pence

Definition: pounds and pence

In the United Kingdom we use pounds and pence. The symbol for pounds is £. The symbol for pence is p.

Key fact: 100p = £1

There are 100 pence in 1 pound. So £2 = 200p and £5 = 500p. We write £1.50 for 1 pound and 50 pence, and we say "one pound fifty".

Coins and notes

The coins are 1p, 2p, 5p, 10p, 20p, 50p, £1 and £2. The notes are £5, £10, £20 and £50.

Rule: the silver and copper coins

1p and 2p are copper-coloured coins.
5p, 10p, 20p and 50p are silver-coloured coins. The 20p and 50p coins have seven sides.
£1 and £2 are the biggest coins.

Counting coins

Method: counting coins

Put the coins in order, with the biggest value first.
Count on, starting with the biggest coin.
Say the total with the correct unit, p or £.

50p, 70p, 80p, 85p. The total is 85p.

Worked example 1

What is the total of 50p, 20p, 20p and 5p?

Start with 50p. Add 20p: 70p. Add 20p: 90p. Add 5p: 95p.

Making amounts in different ways

Definition: different ways to make an amount

The same amount of money can be made with different coins. 20p can be made with one 20p coin, or two 10p coins, or four 5p coins, or one 10p coin and two 5p coins.

Worked example 2

Show two different ways of making 30p using silver coins.

Way 1: 20p + 10p = 30p. Way 2: 10p + 10p + 10p = 30p. A third way is 20p + 5p + 5p.

Adding money

Method: adding prices

Write down the prices to add. Make sure they are all in pence, or all in pounds.
Add the tens first, then the ones, or add in your head by partitioning.
Write the total with the unit.

Worked example 3

A comic costs 45p and a sweet costs 28p. How much do they cost together?

45 + 28 = 73. They cost 73p together.

Worked example 4

Three books cost £2, £3 and £4. How much altogether?

2 + 3 + 4 = 9. The books cost £9 altogether.

Giving change

Definition: change

Change is the money you get back when you pay with more money than the price. To find change, take the price away from the amount you pay.

Method: finding change by counting on

Start at the price of the item.
Count on in small steps up to the next ten or pound.
Then count on to the amount you paid. Add up the steps.

Worked example 5

Sam buys a pencil for 35p. He pays with a 50p coin. How much change does he get?

Count on from 35p to 40p: 5p. Then 40p to 50p: 10p. 5 + 10 = 15. His change is 15p. Check: 50 − 35 = 15.

Worked example 6

A pizza costs £7. Amy pays with a £10 note. What is her change?

10 − 7 = 3. Her change is £3.

Pounds and pence together

Rule: amounts with pounds and pence

Write £2.45 for 2 pounds and 45 pence. The numbers after the decimal point show the pence. £2.45 = 245p. When you add, add the pounds and the pence separately, and change 100p into £1.

Worked example 7

A toy costs £1 and 60p. A ball costs 80p. How much do they cost?

60p + 80p = 140p, which is £1 and 40p. £1 + £1 and 40p = £2 and 40p.

Watch out

Do not mix pounds and pence in one sum! 50p + £1 is not 51. Change the pound to 100p first: 50p + 100p = 150p = £1.50. Never write both £ and p in the same number, like £1.50p.

Did you know?

The pound is one of the oldest coins in the world and is more than 1000 years old. A long time ago, there were 240 pennies in a pound. In 1971, the UK changed to 100 pence in a pound, so counting became much easier!

Otto's tip

Always estimate first. 49p + 51p is almost 50p + 50p, which is £1. Look for pairs that make 100p, such as 20p and 80p, 30p and 70p, or 45p and 55p. They make adding money much quicker.

How to use this Year 2 money lesson

First, read the key points so that you know where the Year 2 money lesson is going. Then work through each definition and worked example, and cover the solution before you read it. After that, practise with the money worksheet and check every question with the worksheet answers. When you feel ready, test yourself with the multiple choice questions or the quick quiz. Finally, sit the money test and mark it with the test answers.

Also, the starters are a good warm-up, so you can keep the key facts fresh. Moreover, all the pages of this chapter work together, so you can move between them at any time. For example, many pupils read the lesson on Monday, practise on Wednesday and test themselves on Friday. In short, this Year 2 money lesson gives you everything you need for the chapter.

To sum up, regular practice works better than one long session. For instance, ten minutes a day is often enough. Besides, mistakes are useful, because they show what to revise next. Then, once a method feels easy, try a harder question. As a result, you build confidence step by step.