What this guide is about
A price is the number a shop charges for something. Prices are different because of how much it costs to make, how much people want it, how special it is, and sometimes just the brand name. Knowing this helps you spot when you're paying for something useful versus paying for a name.
What is a price?
A price is the number a shop puts on an item so they know what to charge you for it. Every price has reasons behind it — even if it doesn't feel like it.
To set a price, the shop has to think about:
- How much it cost them to buy or make the item
- How much they need to pay their workers and the shop
- How much profit they want to keep
- How much people are willing to pay
If the shop sets the price too high, no one buys it. If too low, they don't make enough money to keep the shop open. The right price sits somewhere in between.
Reason 1: It costs a lot to make
Some things are expensive because they're genuinely hard or costly to make.
- A car has thousands of parts, hundreds of workers, lots of metal and plastic, and weeks of building.
- A laptop has tiny chips that are made in special factories and cost millions of pounds to build.
- A film at the cinema cost millions to make — actors, sets, special effects, music. Your ticket is just one of many that has to pay for all that.
- Fresh fruit from another country had to be grown, picked, packed, frozen, shipped on a plane or ship, stored cold — all that costs money.
For things like these, a high price often makes sense. The shop isn't being greedy — the item really cost a lot to get to you.
Reason 2: Lots of people want it
If many people want something but only a few exist, the price goes up. This is called supply and demand.
Examples:
- A football team's shirt for a big match — everyone wants one. Price goes up.
- A toy that's on a popular YouTube channel — suddenly every child wants it. Price goes up. Sometimes it sells out and people buy them second-hand for double.
- A hotel room at the seaside in August — everyone wants holidays in summer. Prices go up.
- A hotel room at the seaside in November — few people want to go. Prices drop.
Same thing, very different price, depending on how many people want it right now.
Reason 3: It's a famous brand
Sometimes two items are almost identical but one costs much more. The difference is usually the brand.
- A plain white t-shirt from the supermarket: £4
- An almost-identical t-shirt with a designer logo: £30
The cotton, the stitches, the size — basically the same. The difference is the logo. People pay extra for:
- The feeling that they have something special
- The brand name being recognised by friends
- A small extra quality difference (sometimes — not always)
Brand isn't always silly. Sometimes brands really do mean better quality, longer-lasting items, or items made more fairly. But sometimes you're mostly paying for the name. Knowing the difference helps you decide if it's worth it for you.
Reason 4: It's special, rare or hand-made
Things that are one-of-a-kind cost more.
- A painting by a famous artist: thousands or millions of pounds
- A poster of that painting from the gift shop: £8
- A jumper hand-knitted by your grandma: priceless (and would cost £80 to buy from a knitter)
- A jumper from a factory: £15
When something takes special skill or only exists in tiny numbers, it costs more. This is why concert tickets for popular artists can cost £100+ — only a few thousand people can go, so the price goes up.
How to be a smart shopper at age 8-9
You can use what you know to make better choices:
- Compare prices. Even at this age you can check — ask a grown-up to look at the same item in two shops or on two websites.
- Ask "what am I paying extra for?" Is it real quality, a brand name, or just packaging?
- Wait for sales. If you really want something, look up when it's likely to be cheaper.
- Own-brand often works. Supermarket own-brand cereals, biscuits, paper, and toys are often made in the same factories as the famous brands. Worth trying.
- Look at price per amount. A big bag isn't always better value — check the price per 100g or per item.
You'll get better at this with practice. By age 12-13 you'll start spotting price patterns automatically.
For teachers: curriculum links
- England — PSHE Association KS2 L17 (managing money)
- England — Maths KS2 (money, comparing values, multiplication)
- England — Citizenship KS2 (rights as a consumer)
- Wales — Curriculum for Wales Progression Step 2-3 (Humanities AoLE, Maths & Numeracy AoLE)
- Scotland — Curriculum for Excellence MNU 2-09a
- NI — PDMU KS2, Mathematics KS2
Full mapping in the curriculum map.
UK Tax Drag (2026). Why some things cost more than others. Ages 8–9 guide. Available at: https://kids.uktaxdrag.co.uk/ages-8-9-why-things-cost-different.html
Curriculum mapping: see UK Financial Education Curriculum Map (Version 1.0).