Taxes!

Every time you earn money, a portion of it goes to taxes. Taxes help pay for things people use every day like roads, schools, emergency services, and public transportation. Even if you’ve never filed taxes yourself, you’ve probably already paid them (for example, sales tax when you buy something). Understanding taxes isn’t just about forms, but it’s about knowing where your money goes and why.

In the U.S., taxes are collected by the government through agencies like the Internal Revenue Service. The amount you pay depends on how much you earn and sometimes where you live. Taxes are a shared system where people contribute to fund services that support everyone, but how much and how it’s used can be a big topic of debate.

Your Task: Follow the Money
Imagine you earned $500 from a part-time job.
1. Estimate: About how much might go to taxes? (take a guess!) How much would you actually keep?
2. Think Bigger: Name 3 things taxes help pay for that you use or benefit from
3. Fair?: Do you think taxes are fair? Why or why not?
4. Your Ideas If you could choose one thing your tax money goes toward, what would it be and why?

This is part of a week-long financial literacy series in honor of National Financial Literacy Month in April.