UK K12 GCSE A-Level Year 1 KS1 Financial Literacy Coins and Notes Recognising Money

Learning objectives

By the end of this topic, students will be able to:

• Recognise and identify different UK coins and banknotes
• Understand the value of each coin and banknote
• Demonstrate an awareness of the different denominations and their uses
• Begin to understand the concept of money and its role in everyday life

Core concepts

Money is an essential part of our daily lives, and it's crucial to understand the different types of money we use in the UK. There are two main types of money: coins and banknotes. Coins are made of metal and come in various denominations, from 1p to £2. Banknotes are made of paper and come in denominations of £5, £10, and £20.

Coins

Coins are used for smaller transactions, such as buying sweets or toys. The most common coins are:

• Penny (1p): a small coin with a picture of a queen
• 2p: a coin with a picture of a queen and a value of 2p
• 5p: a coin with a picture of a queen and a value of 5p
• 10p: a coin with a picture of a queen and a value of 10p
• 20p: a coin with a picture of a queen and a value of 20p
• 50p: a coin with a picture of a queen and a value of 50p
• £1: a coin with a picture of a queen and a value of £1
• £2: a coin with a picture of a queen and a value of £2

Banknotes

Banknotes are used for larger transactions, such as buying clothes or a toy. The most common banknotes are:

• £5: a banknote with a picture of a queen and a value of £5
• £10: a banknote with a picture of a queen and a value of £10
• £20: a banknote with a picture of a queen and a value of £20

Worked examples

Example 1

Sarah has 3p in her piggy bank. She wants to buy a toy that costs 5p. How much more money does Sarah need?

Answer: Sarah needs 2p more to buy the toy.

Example 2

Tom has a £5 banknote. He wants to buy a toy that costs £3. How much change will Tom get?

Answer: Tom will get £2 in change.

Common misconceptions

• Some students may think that coins and banknotes are the same thing.
• Some students may think that coins are only used for small transactions and banknotes are only used for large transactions.
• Some students may think that the value of a coin or banknote is only determined by its size.

Exam tips

• Make sure to read the question carefully and understand what is being asked.
• Use a ruler to help you draw diagrams and charts.
• Practice, practice, practice! The more you practice, the more confident you will become.

MCQs with explanations

Question 1 [F]

What is the value of a 50p coin? A) 10p B) 20p C) 50p D) £1

Correct answer: C) 50p Why the distractors fail: * A) 10p is the value of a 10p coin, not a 50p coin.
* B) 20p is the value of a 20p coin, not a 50p coin.
* D) £1 is the value of a £1 coin, not a 50p coin.

Question 2 [F]

What is the value of a £5 banknote? A) £1 B) £5 C) £10 D) £20

Correct answer: B) £5 Why the distractors fail: * A) £1 is the value of a £1 coin, not a £5 banknote.
* C) £10 is the value of a £10 banknote, not a £5 banknote.
* D) £20 is the value of a £20 banknote, not a £5 banknote.

Question 3 [H]

What is the difference between a coin and a banknote? A) A coin is made of paper and a banknote is made of metal.
B) A coin is used for small transactions and a banknote is used for large transactions.
C) A coin has a picture of a queen and a banknote has a picture of a king.
D) A coin is used for everyday transactions and a banknote is used for special occasions.

Correct answer: B) A coin is used for small transactions and a banknote is used for large transactions.
Why the distractors fail: * A) Coins are made of metal and banknotes are made of paper.
* C) Both coins and banknotes have pictures of the queen.
* D) Both coins and banknotes are used for everyday transactions.

Question 4 [F]

What is the value of a 2p coin? A) 1p B) 2p C) 5p D) 10p

Correct answer: B) 2p Why the distractors fail: * A) 1p is the value of a 1p coin, not a 2p coin.
* C) 5p is the value of a 5p coin, not a 2p coin.
* D) 10p is the value of a 10p coin, not a 2p coin.

Question 5 [H]

What is the difference between a £10 banknote and a £20 banknote? A) A £10 banknote has a picture of a queen and a £20 banknote has a picture of a king.
B) A £10 banknote is used for everyday transactions and a £20 banknote is used for special occasions.
C) A £10 banknote has a value of £10 and a £20 banknote has a value of £20.
D) A £10 banknote is made of paper and a £20 banknote is made of metal.

Correct answer: C) A £10 banknote has a value of £10 and a £20 banknote has a value of £20.
Why the distractors fail: * A) Both £10 and £20 banknotes have pictures of the queen.
* B) Both £10 and £20 banknotes are used for everyday transactions.
* D) Both £10 and £20 banknotes are made of paper.

Short-answer questions

Question 1

What is the value of a £2 coin?

Answer: The value of a £2 coin is £2.

Question 2

What is the difference between a 50p coin and a £1 coin?

Answer: A 50p coin has a value of 50p, while a £1 coin has a value of £1.

Question 3

What is the value of a £5 banknote and a £10 banknote?

Answer: A £5 banknote has a value of £5 and a £10 banknote has a value of £10.

Question 4

What is the difference between a coin and a banknote?

Answer: A coin is used for small transactions and a banknote is used for large transactions.

Question 5

What is the value of a 10p coin and a 20p coin?

Answer: A 10p coin has a value of 10p and a 20p coin has a value of 20p.