When you WRITE the numbers, you write in an appropriate number of significant figures. However, when you CALCULATE them you should always keep the exact (or most accurate) value stored on your calculator and do not use the rounded value in the next round of calculations. You only round off at the end, because if you do it too early, you may lose precision.
In terms of how many significant figures to round off, you should refer to the question's given data. Whichever data has the LEAST significant figures is the limiting data in precision. So for example, if you are given x = 6.0, y = 25.61, you would round off to 2 significant figures, because x is less precise than y. If you round off to 4 significant figures instead, you have a big margin of uncertainty, because the x can be several values like 6.013, 6.022, 6.012...etc. Therefore, you always round off according to the significant figures given in the question. However, that being said, I don't think the marking scheme is too fussy about that, as long as the rounding off is APPROPRIATE. (e.g. for a titration, it's probably not a good idea to round 25.12mL to 30mL)