Common practice for handling currency is to use decimal type. Here is a simple example from "Agile Web Development with Rails"
add_column :products, :price, :decimal, :precision => 8, :scale => 2
This will allow you to handle prices from -999,999.99 to 999,999.99
You may also want to include a validation in your items like
def validate
errors.add(:price, "should be at least 0.01") if price.nil? || price < 0.01
end
to sanity-check your values.