I’m sure your kids have seen you a dozen times, scratching your head and staring at long digits. And they’ve probably come to you asking what you were doing while struggling with percentage signs and calculations. Most parents run away from talking about more complicated financial topics and stick to the basics like saving and money value. We prefer to think they’re worried about scaring their children from the vast and never-ending financial world and not just being too busy or tired!
However, taxes are an essential part of life our kids have to face them in the future. And as we mentioned before, the sooner we prepare them for the real world, the chances are higher for them to have more prosperous adulthood. It will also make them more responsible citizens.
Perhaps you’d like to pick up a more delightful topic to start a conversation with your kids.
But you should know that as much exasperating as taxes can be, they can also benefit us.
Our experts in YounGo help you with a few tips and tricks to make this process fun.
What Are Taxes Anyway?!
The first step is illustrating a simple picture of taxes. If your kids are willing to go grocery shopping with you, use this opportunity to explain the concept of tax. Let them pick a candy bar or any other snacks they like. The trick here is to help them choose an item that costs a flat number to make the process easier. If it’s labelled £2 on the snack, you have to pay a little higher because of the taxes. Show them the receipt and clarify that the extra amount you paid is “Tax” and goes to the government.
This simple in-store activity and casual conversation with your children may not seem that much, but it raises so many questions in their minds.
That’s when you should prepare yourself for the next step.
What’s the Point of Paying Taxes?
Bear in mind that in every step of explaining the taxes, the key is to keep it simple. So, there’s no need to explain paying taxes’ economic and political perspectives. Instead, you can show them the playgrounds, schools, roads, etc., and explain how our taxes have helped the government build them. You can also tell them more about their future and the vital part they’ll play in making their city and country a better place by paying their taxes.
When Is the Right Time to Explain the Taxes?
Like our previous discussions, there’s no one size fits all answer to this question.
The most suitable time to talk about taxes with kids is entirely your decision. Based on your children’s understanding, you can determine when is the right time and how deep you can dive into this topic.
Take Action With Taxes!
To clarify the concept of taxes, you can create simplified rules and make a family tradition called “Our Family’s Tax.” Use a shoebox or a piggy bank and tell your kids that a small portion of their money (pocket money or what they make by doing chores) goes into the Tax box. After a few months, spend the collected money on something that makes all the family members happy. It can be a family trip to the zoo or an object at home that everybody loves.
The creative methods we mentioned above might be a great way to lay the groundwork for making the kids understand the complicated concept of taxes. However, they are not enough!
It would be best if you also prepared them to understand the different types of taxes like the Income-tax, Consumption tax, Corporation tax, etc.
Teens Need More Help
Your teens might start to make their own money by having summer jobs or part-time jobs. They might get disappointed to review their paycheck and see how much they are losing for taxes. That’s why they’ll need your assistance and supervision. Review their paycheck and, if necessary, help them fill out a form for different purposes. For instance, you might be able to help them keep their money instead of waiting for their tax refund in spring.
To Sum Up
It’s vital to talk to our children about taxes as soon as we feel they are ready. It might not be an excellent topic, but sooner or later, they’ll face it as a reality and a financial routine in their future.
There are some inventive ways to make the process easier.