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Understanding One Percent

Understand what one percent means and use it as the building block for calculating any percentage of a money amount.

In this lesson

Understanding One Percent is part of Percentages in Money. This preview shows how percentages connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.

Think about this money choice

Dayo's teacher says one percent of 200 in local currency is 2 in local currency. Dayo is confused.

How it works

One percent means one out of every hundred. To find 1% of any amount, divide it by 100. To find 5%, find 1% then multiply by 5. Percentages appear everywhere in money — discounts, interest, taxes, and tips all use them.

Try a real-life example

Real-life money moment: Dayo's teacher says 1% of 200 in local currency is 2 in local currency. Dayo checks: 200 in local currency ÷ 100 = 2 in local currency. So 5% = 10 in local currency, and 10% = 20 in local currency. Once you know 1%, you can find any percentage by multiplying.

Activity preview

Match the money ideas

Use what you learned to complete this short challenge.

Practice funding your spending account

Open Requests and make a deposit request so you can see how money gets added before spending. Parent approval can happen later.

Quiz preview

One percent of an amount means:

One tenth of the total — so 1% of 5000 in local currency is 500 in local currency
A very small amount with no fixed relationship to the whole
One out of every hundred — so 1% of 5000 in local currency is 50 in local currency
The first digit of any number — so 1% of 5000 in local currency is 5 in local currency

A shop charges 1% service fee on a 20000 in local currency purchase. The fee is:

200000 in local currency — which multiplies rather than divides
20 in local currency — one hundredth of one hundred
2000 in local currency — which is one tenth of the total
200 in local currency — which is 1% of 20000 in local currency