Taxes

Explain to your child that the government keeps part of the income you earn and uses it to provide goods and services for the community, such as roads, parks, and fire departments.  The money that the government keeps is called "taxes."  Taxes are used to pay for roads, school, and police and fire protection in a community.

Have family members (including parents!) pay taxes.  They can contribute 10% of their allowance to a family fund.  Collect the fund in a glass jar, and use the proceeds for an item or activity that will benefit the entire family.  Make sure that all tax-paying family members have a vote in how the funds are used.