The Case of the Missing Paycheck

What your kid learns

• Taken out before payday

  Some of a worker’s pay is taken out before they get it. That’s taxes. Real amounts depend on the person and the place. People who run their own business pay taxes themselves.

• What taxes pay for

  Taxes pay for shared things: roads, schools, parks, libraries and firefighters. There are different taxes. Some are on pay, some on things you buy, some on homes.

• Who decides?

  Voters and the leaders they elect decide how tax money is spent. For most workers, part of what’s taken out is Social Security. It helps people when they’re older or can’t work. Some, like many teachers, have a different plan instead.

The story: The Case of the Missing Paycheck

In an office, a teacher shows Diego a pretend paycheck where $20 of $100 went to taxes for shared things.

1. Helper: A missing money case, detectives! Let’s look at a paycheck.
2. Teacher: I earned a pretend $100. But only $80 arrived.
3. Diego: Where did the other $20 go?
4. Teacher: It went to taxes before I got paid.
5. Diego: What do taxes pay for?
6. Teacher: Roads, schools, parks, libraries and firefighters. Things we all share.
7. Diego: So the money isn’t missing. Everyone chips in!
8. Helper: Case closed! Taxes are everyone chipping in for what we share.

The game: Where Does It Go?

Tap each thing. Do taxes help pay for it? Or does one family buy it?

Games use pretend money and work with taps or a keyboard. Nothing is timed.

New words

taxes

money people pay to share costs, like roads and schools

income tax

a tax on money people earn

shared services

things we all use, like parks and libraries

Also called: public goods

Social Security

money that helps people when they’re older or can’t work

Questions at the end

• Why is a paycheck smaller than what the worker earned?
• Which one do taxes help pay for?
• Who decides how tax money is spent?

Remember this

Taxes are everyone chipping in for what we share.

Talk about it

On a drive or walk, point out 3 things taxes help pay for.

Try it at home: Spot 5 shared things

1. On a walk, a ride or a trip to school, look around.
2. Spot 5 things taxes help pay for.
3. Tell a grown-up what you found.

This whole mission is free. No account or app needed.

For grown-ups: live facts

• Where federal tax money goes

  Source: USAspending.gov(opens in a new tab)

School standards

• National Standards for Personal Financial Education: Earning Income