diff --git a/app/models/validations/shared_validations.rb b/app/models/validations/shared_validations.rb
index 6a42b02f5..bc84dd174 100644
--- a/app/models/validations/shared_validations.rb
+++ b/app/models/validations/shared_validations.rb
@@ -44,7 +44,7 @@ module Validations::SharedValidations
       incorrect_accuracy = (value.to_d * 100) % (question.step * 100) != 0
 
       if question.step < 1 && incorrect_accuracy
-        record.errors.add question.id.to_sym, I18n.t("validations.numeric.nearest_penny", field:)
+        record.errors.add question.id.to_sym, I18n.t("validations.numeric.nearest_hundredth", field:)
       elsif incorrect_accuracy || value.to_d != value.to_i    # if the user enters a value in exponent notation (eg '4e1') the to_i method does not convert this to the correct value
         field = question.check_answer_label || question.id
         case question.step
diff --git a/config/locales/en.yml b/config/locales/en.yml
index 616a585f1..a2beaf6cb 100644
--- a/config/locales/en.yml
+++ b/config/locales/en.yml
@@ -141,7 +141,7 @@ en:
       above_min: "%{field} must be at least %{min}"
       whole_number: "%{field} must be a whole number"
       nearest_ten: "%{field} must be given to the nearest ten"
-      nearest_penny: "%{field} must be given to the nearest penny"
+      nearest_hundredth: "%{field} must be given to the nearest hundredth"
       normal_format: "Enter a number"
 
     date:
diff --git a/spec/models/validations/shared_validations_spec.rb b/spec/models/validations/shared_validations_spec.rb
index b2b57f071..88c73934a 100644
--- a/spec/models/validations/shared_validations_spec.rb
+++ b/spec/models/validations/shared_validations_spec.rb
@@ -159,7 +159,7 @@ RSpec.describe Validations::SharedValidations do
       it "adds an error if input has more than 2 decimal places" do
         sales_log.mscharge = 30.7418
         shared_validator.validate_numeric_step(sales_log)
-        expect(sales_log.errors[:mscharge]).to include I18n.t("validations.numeric.nearest_penny", field: "Monthly leasehold charges")
+        expect(sales_log.errors[:mscharge]).to include I18n.t("validations.numeric.nearest_hundredth", field: "Monthly leasehold charges")
       end
 
       it "does not add an error if the user attempts to input a number in exponent format" do