EDEXCEL GCSE FOUNDATION MATHS - What is Money

Edexcel GCSE Foundation Maths: What is Money?

Introduction

Money is an essential part of everyday life. We use it to buy goods and services, pay for bills, and save for the future. In this tutorial, we'll learn about the different types of money, how it works, and some basic calculations you can do with it.

Types of Money

There are two main types of money:

• Cash: Physical money in the form of coins and banknotes.
• Digital Money: Money held in bank accounts, online wallets, or other electronic systems.

The Decimal System

The UK uses a decimal currency system, meaning there are 100 pence (p) in 1 pound (£).

Example:

• £5.25 is the same as 525p.

Basic Money Calculations

1. Addition and Subtraction:

• Adding: To add amounts of money, simply add the pounds and the pence separately.
• Subtracting: To subtract amounts of money, subtract the pounds and pence separately.

Example:

• £3.50 + £2.75 = £6.25
• £10.00 - £4.50 = £5.50

2. Multiplication and Division:

• Multiplication: To multiply an amount of money by a number, multiply the pounds and pence separately.
• Division: To divide an amount of money by a number, divide the pounds and pence separately.

Example:

• £2.50 x 3 = £7.50
• £10.00 ÷ 2 = £5.00

Important Points

• Always remember to use the correct currency symbol (£) when writing down amounts of money.
• Be careful with decimal points when performing calculations.
• It's helpful to practice these basic calculations with real-world examples to understand how money works in everyday life.

Practice Exercises

1. A loaf of bread costs £1.20. How much will 3 loaves cost?
2. You have £20.00 and spend £8.50 on groceries. How much money do you have left?
3. You earn £15.00 per hour and work for 8 hours. How much money do you earn in total?

Conclusion

Understanding basic money concepts and calculations is vital for financial literacy. Practice these skills regularly and you'll be able to confidently manage your own finances.