What does it mean when you go into a shop and see a sign that says “25% off”? How do you work out how much money you'll save on a game you want to buy and what price you will have to pay?

The term “per cent” is often used when we talk about money. It means “out of 100” and the symbol for per cent is %.

25% means 25 out of 100, which is the same as 25 divided by 100.

So to work out how much you would save on a £20 game in a shop offering 25% off, do this sum:

25 ÷ 100 (the percentage) x 20 (the full price) = 5

This tells you that you’ll save £5.

Now, to work out how much you will have to pay, simply subtract this £5 from the full price of the game:

20 – 5 = 15

Solved! You will have to pay £15.

Percentages are also useful when we talk about savings. If a bank offers you 5% interest and you have saved £50, you can work out how much interest you’ll receive by doing this sum:

5 ÷ 100 (the percentage) x 50 (the full amount) = 2.5

This tells you that the bank will give you £2.50, which you can add to your savings – meaning you will end up with £52.50 in your bank account!

Look out for percentages on the Pocket Money website and remember, when you see %, it means “out of 100”.

Find out what money words mean