A decimal represents a fractional part of a whole number and is commonly used to represent monetary amounts. Decimals are read by stating the whole number portion followed by the name of the place value of the decimal portion. For example, $12.35 would be read as "twelve dollars and thirty-five hundredths." It is important to understand decimals because small differences in decimal amounts can represent meaningful differences, such as the 45 cent difference between $12.05 and $12.50.