Maths: Grade 5
Numbers: Money
MONEY
It is important to understand money in everyday life. You
need to be able to convert rand and cents, add amounts in
rand and cents and work out what change you will get
when shopping. You will also need to work with decimal
points when you solve money problems.
Converting Rands to Cents
When we write the Rand amount, we put R before the amount. If the amount is less than
R1, for example, eighty five cents, we can either write this as 85c or R0,85.
The decimal comma separates the rands from the cents, for example R0,85.
To convert rands to cents, you would multiply by 100 because R1 is equal to 100 cents (c).
Example
R2,50 = 250c
R25 = 2500c
To convert from cents to rands, you would divide by 100.
Example
1 000c = R10
80c = R0,80
Using Money When Shopping
When you go shopping and do not give the exact amount of money for the goods, you will
get change. For example, you buy some fruit for R15 and pay with a R20 note, you will get
R5 change. This can be given in a variety of coins, for example 2 x R2 and 1 x R1 coin.
You also will need to add up how much your shopping will cost, so you can check that you
have enough money as well as to check that the cashier charges you the correct amount and
gives you the correct change.
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Maths: Grade 5
Numbers: Money
Example
Let’s say you buy the following items:
Sweets – 75c
Drinks – R6,82
1. First make sure both amounts are in the same units, i.e. 75c = R0,75
2. Then add the 2 amounts. Ensure you line up the decimal commas:
R 10, 7 5
+ R 6, 8 2
R 7, 5 7
3. The total cost is therefore R7,57.
When you add or subtract money, you must always use two decimal places and put in extra
zeroes if needed.
Simple Budgets
A budget is a plan of how you are going to spend your savings or earnings.
A budget can be created for you, your family, a business, an event or even a country.
It shows how much money is available (income) and how that money will be spent
(expense).
Example
Joe earns R5000 a month working in a call center. He also has a savings account and earns
R20 interest a month in interest from this. He pays rent of R1 800, his food costs R1 250
per month, cellphone R300, insurance R150, R325 on a medical savings card, R400 on
clothes and R500 on transport.
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Maths: Grade 5
Numbers: Money
Joe’s Budget for a Month
Income
Money earned
R5 000
Interest
R20
Total Income
R5 200
Expenditure (Money Spent)
Rent
R1 800
Food
R1 250
Cellphone
R300
Insurance
R150
Medical Savings
R325
Clothes
R400
Transport
R500
Total Expenditure
R4 725
So what’s left?
Total Income - Total Expenditure
= R5 200 - R4 725
= R475
Joe has R475 left over to spend or to put into his savings account.
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Maths: Grade 5
Numbers: Money
Profit and Loss
The aim of any business is to make a profit. This means that the business has more income
than expenses. If the business has more expenses than income, it will make a loss and go
out of business.
A simple profit and loss statement can be prepared by the business to see if they are making
a profit or not.
Example
Nozipho runs a small business making sandwiches and selling them in the local offices.
Last month, her income from the sandwich sales was R1 250. The bread and other
ingredients cost her R795. She also used R120 of electricity to make the sandwiches and
spent R86 on plastic wrappers. Her transport was R375. Did she make a profit or loss?
Nozipho's Profit and Loss
Income
Sandwich sales
R1 250
Total Income
R1 250
Expenditure (Money Spent)
Bread/ingredients
R795
Electricity
R120
Wrappers
R86
Transport
R375
Total Expenditure
R1 376
R1 250 - R1 376 = -R126
Her expenses were more than her income, so her business made a loss of R126.
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