Operations of Money: Addition, Subtraction, Multiplication and Division

Operations of Money

Operations of money are basic math skills used in everyday life. These include addition of money, subtraction of money, multiplication of money, and division of money. Learning these operations makes students learn how to count money, word problems and make smart decisions when shopping, saving or budgeting money.

At school, students are taught addition and subtraction of money with decimals, multiplication of money to cover repetitive expenses and division of money to equal divisions. The skills are useful in real life scenarios such as purchasing goods, adding up money or budgeting costs.

Money operations also show students how not to make the typical mistakes such as putting the decimal point in the wrong place or forgetting to place the numbers in the correct order. Through practice using examples, word tasks, and real world problems, the learners gain more confidence and accuracy.

Check complete list of Operations With Money, Multiplication, Division, Common Mistakes to avoid, Money Addition and Subtraction and more below.

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What are Operations With Money?

Money operations involve basic arithmetic operations such as addition of money, subtraction of money, multiplication of money and division of money to solve problems involving rupees and paise. These operations with money assist us to determine the total cost, determine how much change we will have to give back, divide money among individuals, compare prices and budget planning in real life.

According to the NCERT and CBSE Class 4-6 Maths curriculum, students initially get to know how to solve simple money word problems with the help of coins and notes. Afterwards, they are taught to work with decimals, 1 = 100 paise, shopping bills, savings, and spending plans.

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Types of Different Operations With Money

Operations with money involve using basic arithmetic operations such as addition, subtraction, multiplication, and division to work with amounts in rupees and paise. These operations help us in real-life situations like shopping, saving, budgeting, and sharing money. Students learn these skills through money word problems, practical examples, and daily activities.

Addition of Money

Addition of money is used to find the total amount spent, earned, or saved. It helps students understand how to calculate the combined cost of multiple items. This helps in adding rupees and paise, and teaches students to align decimal points correctly.

Example: Riya buys a pencil for ₹25.50 and a notebook for ₹74.25.

• Total amount spent = ₹25.50 + ₹74.25 = ₹99.75

Subtraction of Money

Subtraction of money is useful for finding out how much money is left after spending or how much change should be returned after a purchase.

Example: Rahul has ₹200 and he buys a book for ₹125.50.

• Change returned = ₹200 − ₹125.50 = ₹74.50

Multiplication of Money

Multiplication of money is used when the same item is bought in multiple quantities or to calculate repeated payments such as monthly expenses.

Example: A pencil costs ₹12. If Meena buys 5 pencils:

• Total cost = ₹12 × 5 = ₹60

Division of Money

Division of money is used to split a total amount equally or to find the cost per person or per item. Division helps students understand fair sharing and unit price in daily life situations.

Example: A total bill of ₹240 is shared among 4 friends.

• Each person pays = ₹240 ÷ 4 = ₹60

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Common Mistakes to Avoid While Learning Operations With Money 

Students often make mistakes while solving money problems because of confusion with decimals, units, or incorrect steps during calculations. Understanding these common errors helps improve accuracy and builds stronger problem-solving skills.

Some common mistakes and tips to avoid them:

1. Incorrect decimal placement: Writing ₹89.5 + ₹110.50 as ₹89.5 + ₹1105.0 is incorrect.

• Tip: Always align decimal points correctly when adding or subtracting money.

2. Mixing rupees and paise: Reading ₹2.75 as ₹275 can lead to major errors.

• Tip: Remember that ₹1 = 100 paise. ₹2.75 means 2 rupees and 75 paise, not 275 rupees.

3. Wrong multiplication: Multiplying ₹45 × 4 and writing ₹1800 instead of ₹180.

• Tip: Multiply carefully and double-check the decimal placement.

4. Incorrect division: Dividing ₹500 among 3 people and writing the answer as ₹1.66 instead of ₹166.67.

• Tip: Use proper long division and round off only when needed.

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