Adding and subtracting money is one of the most practical math skills a third grader develops. It connects the abstract rules of decimal arithmetic to everyday purchasing decisions — and it appears on virtually every Grade 3 state math assessment in some form. With the right scaffolding, most third graders find money problems more engaging than abstract number problems because the context is familiar.
This page provides worked examples, a practice worksheet, and teaching notes for Grade 3 adding and subtracting money. All amounts use dollar-and-cents notation with the decimal point.
Key Concepts Before You Start
Before students work through adding and subtracting money, they should be comfortable with:
- Reading coin values (penny = $0.01, nickel = $0.05, dime = $0.10, quarter = $0.25)
- Writing amounts in decimal notation: 3 dollars and 47 cents = $3.47
- Understanding that the decimal point separates dollars (left) from cents (right)
- Adding and subtracting two-digit numbers with regrouping
If a student is uncertain about coin values, spend five minutes reviewing them before starting the worksheet.
Part 1: Adding Money — Worked Examples
Adding money works just like adding decimals — line up the decimal points and add from right to left, regrouping (carrying) when a column reaches 10 or more.
Example 1: Simple Addition
Maya has $2.35. She earns $1.48 doing chores. How much money does she have now?
$2.35 + $1.48 ------- $3.83
Steps: 5 cents + 8 cents = 13 cents. Write 3, carry 1. 3 dimes + 4 dimes + 1 (carried) = 8 dimes. 2 dollars + 1 dollar = 3 dollars. Answer: $3.83
Example 2: Adding Three Amounts
Jake buys a pencil for $0.75, a notebook for $1.20, and a eraser for $0.45. What is the total cost?
$0.75 $1.20 + $0.45 ------- $2.40
Steps: 5 + 0 + 5 = 10 cents. Write 0, carry 1. 7 + 2 + 4 + 1 = 14 dimes. Write 4, carry 1. 0 + 1 + 0 + 1 = 2 dollars. Answer: $2.40
Example 3: Addition with Whole Dollars
A toy costs $4.00 and a book costs $2.75. What is the total?
$4.00 + $2.75 ------- $6.75
Answer: $6.75
Part 2: Subtracting Money — Worked Examples
Subtracting money requires the same alignment of decimal points. Regrouping (borrowing) works the same way as with whole numbers.
Example 4: Making Change
Lena pays $5.00 for a sandwich that costs $3.47. How much change does she receive?
$5.00 − $3.47 ------- $1.53
Steps: 0 − 7 is not possible; borrow from the dimes place. The 0 becomes 10 cents; 10 − 7 = 3. Dimes place now has 9 (after lending); 9 − 4 = 5. Dollars: 5 − 3 = 2? No — wait: after borrowing, the 5 became 4. 4 − 3 = 1. Answer: $1.53
Check by adding: $3.47 + $1.53 = $5.00 ✓
Example 5: Comparing Prices
A red hat costs $8.90. A blue hat costs $6.35. How much more does the red hat cost?
$8.90 − $6.35 ------- $2.55
Answer: $2.55
Part 3: Practice Worksheet
Solve each problem. Show your work. Answers are provided at the bottom of the worksheet.
Section A: Addition
- $1.25 + $2.60 = ___
- $3.47 + $1.83 = ___
- $0.95 + $4.05 = ___
- $2.78 + $3.42 = ___
- Tom has $4.50. His sister gives him $1.75. How much does Tom have now?
Section B: Subtraction
- $5.00 − $2.36 = ___
- $7.45 − $3.90 = ___
- $10.00 − $6.73 = ___
- $4.20 − $1.85 = ___
- A book costs $3.99. Sofia pays with a $5.00 bill. How much change does she get?
Section C: Word Problems
- Carlos buys a juice for $1.25 and a granola bar for $0.80. How much does he spend in all?
- Mia has $6.00. She spends $2.47 on a pencil case. How much money does she have left?
- A pen costs $1.15 and a marker costs $0.95. What is the total cost? If you pay with $3.00, how much change do you receive?
- Three friends each buy a snack. Snack prices: apple $0.75, banana $0.60, orange $0.85. What is the total cost for all three snacks?
- Sam has $8.50. He wants to buy a toy that costs $12.00. How much more money does Sam need?
Answer Key
Section A Answers
- $3.85
- $5.30
- $5.00
- $6.20
- $6.25
Section B Answers
- $2.64
- $3.55
- $3.27
- $2.35
- $1.01
Section C Answers
- $2.05
- $3.53
- Total = $2.10; Change = $0.90
- $2.20
- $3.50
Teaching Tips for Money Math
- Always line up the decimal point. This is the single most important habit. Graph paper or wide-ruled paper with clearly aligned columns helps students avoid place value errors.
- Estimate first. Before computing $3.47 + $1.83, ask: “Is the answer closer to $5 or $6?” Estimating builds number sense and catches large errors.
- Use real coins and bills for struggling students. Physical coins make the abstract concrete. Have the student count out exact change before writing the equation.
- Check subtraction by adding back. After getting a change amount, add it to the original price and verify the sum equals what was paid.
More Grade 3 Math Practice
ViewMath offers Grade 3 math workbooks and practice test books that include money problems alongside all other major Grade 3 math topics. The collection is designed for home use and classroom use, with answer keys included. Browse the Grade 3 catalog in the sidebar.
