Introduction to Taxes for Kids and Teens
This video explains the concept of taxes in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about taxes, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Kindergarten
- Elementary School
- Middle School
- High School
The topics covered are:
- What are taxes
- Different types of taxes
- Who pays tax
- Who receives the tax money
- How is the tax money used
- When are taxes due
What are taxes?
Taxes are mandatory fees that both individuals and companies have to pay to the government.
There are many different types of taxes that are paid on different things.
Taxes are the main source of income for the government and help fund projects that benefit the community.
What are the different types of taxes?
Some of the main types of taxes are Income Tax, Capital Gains Tax, Property Tax, and Sales Tax.
If you want to learn more about them, we cover each in detail in our playlist called “Taxes 101“.
Who pays taxes?
Both individuals and companies have to pay taxes on their income, profit, sales, property holdings, etc. above a certain threshold.
Taxes are mandatory and the tax rates applicable are defined by the law, so a company or individual cannot skip paying their taxes, and if they do, they face a penalty.
Who receives the tax money?
Depending on the type of tax, the tax money is collected by the federal, state or local government.
For example, property tax goes to the local government, but income tax goes to the federal and state governments.
What is the tax money used for?
Depending on the level of the government the tax is paid to, it is used to fund different things.
For example, tax paid to the local government is used to build schools and parks, but tax paid to the federal government is used to pay for things like social security, defense or government run health care programs.
When is tax paid?
Most types of taxes are due annually, but not all.
Sales tax, for instance, is paid by the buyer at the time of purchase.
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Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens
Podcast: What are Taxes
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Everything you need to know about taxes: What are Taxes, What are the different types of taxes, Who pays taxes, Who receives the tax money, What is the tax money used for, When is tax paid, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/taxes-for-kids-teens-beginners/
Every kid needs to know about taxes. I read your article. It’s very informative and helpful. I want to know more information about taxes and financial education.
Thanks for sharing.
Thank you @Rupok. Can’t agree more about the need for kids to know about taxes!
Do check out more videos / posts on the website to learn more about various personal finance topics. For taxes specifically, you can look at our “Tax” category here: https://www.easypeasyfinance.com/category/tax/