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FOR IMMEDIATE RELEASE
March 27, 2002
Contact Rebecca Reid at 202-342-2922

Tax Time Teaches Kids to Count Their Eggs and Baskets


“Tax season, as complicated or harassing as it can be, is not only a great introduction to family budgeting for kids, it’s a time to talk about what to do with those tax refunds once you get them home,” says Mr. Canning.

According to Mr. Canning, exposing children to the exercise of tax returns can help diffuse the anxiety that it brings in the future when they are young adults. Additionally, when it comes to tax refunds, it is an opportunity to teach kids a sensible approach to using the refund to their best advantage.

  • Show your kids the tax form; while they might not understand the intricacies of the form, they’ll be able to see the mechanics of basic math at work;
  • Use the World Wide Web to introduce them to practical applications of the Internet; by visiting www.irs.gov you and your children can learn about e-filing together and you can show your kids the differences in the various forms;
  • Take this time to teach your kids about deductions – and that they are one of them – and why! Having your kids understand the cost of raising them gives them a new appreciation for where all your hard-earned money goes;
  • If you donate to charities throughout the year, this is prime time to teach your kids about sharing with those less fortunate, even if you might receive a deduction for it on your tax form;
  • Use the opportunity to showcase the entirety of the household expenses, especially if you have a mortgage; kids are better prepared adults when they comprehend the that their allowance is a mere portion of the total finances;
  • Look at the tax form as an exercise for how your teenager should look at their own allowance or money earned from a part-time job; if they can see that you save, spend and invest all from one source of income, it will give them the confidence to know that they can do the same with their income, no matter how small.
  • Lastly, talk about the benefits of either not receiving a refund (the fact that you didn’t give the government an interest-free loan last year) or the opportunities that a refund can bring and discuss the options.

“By integrating our children into the annual exercise of tax-time, we offer them the chance to be engaged in important household decisions and we teach them invaluable personal finance skills in the process,” says Mr. Canning. “Whether we put all of our eggs in one basket, or in many, we’re teaching them how to count them, where they come from and possibly, how to multiply them.”