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OO.1 Solve word problems with coins and bills up to $5

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What is money in math?

Money in math is the way we use numbers to show the value of coins and bills. We count money to buy, sell, and solve real-life problems.

Examples of money values:
  • Penny = 1 cent ($0.01)
  • Nickel = 5 cents ($0.05)
  • Dime = 10 cents ($0.10)
  • Quarter = 25 cents ($0.25)
  • $1 bill = 100 cents ($1.00)
  • $5 bill = 500 cents ($5.00)
Note

Remember: 100 cents = 1 dollar. Coins are less than a dollar, bills are worth one dollar or more.

How do you identify coins and bills?

Each coin and bill has a different size, color, and value. You can tell what it is by looking at the numbers and symbols printed on it.

Examples:
  • A quarter is larger than a dime and worth 25 cents.
  • A nickel is bigger than a penny, but worth 5 cents.
  • A $5 bill has the number “5” printed on it and is worth five $1 bills.
Note

Always check both the size and the number on the coin or bill to know its value.

How do you count money?

To count money, start with the largest value (bills or quarters) and add smaller values (dimes, nickels, pennies) until you reach the total.

Examples:
  • $1 bill + 25¢ + 10¢ = $1.35
  • $5 bill + 3 quarters = $5.75
Note

Counting from the largest to the smallest makes it easier to avoid mistakes.

How do you solve word problems with money?

To solve a money word problem, figure out what is being asked, add or subtract the amounts, and write the answer with the dollar sign ($) and decimal point.

Examples:
  • Sarah has $2.50. She buys a toy for $1.25. How much money does she have left?
    $2.50 − $1.25 = $1.25
  • Tom has 3 quarters and 2 dimes. How much money does he have?
    75¢ + 20¢ = 95¢
Note

Always label your answer with the correct money symbol: use ¢ for cents under $1.00 and $ for dollars.