There are plenty of negative things kids can learn from your tax returns. They can learn to curse out the government, blame someone else for their own lack of good bookkeeping, and of course, they can learn to procrastinate. If you get a refund, you can also teach your kids to spend money like water. All kidding aside, there are some very positive things your kids can learn at tax time, if you do your taxes the right way.
Kids listen to every word you say. No, really they do. So rather than ranting and raving at tax time, how about explaining the system to them? Use that energy to provide some helpful tax education to your kids. Show them how and why we pay taxes. Explain where the money goes. Even if you have your doubts about the system, give your child a positive viewpoint. If nothing else, it will keep their stress levels down when they have to do their own taxes.
Be diligent. If you want your kids to keep accurate records and avoid an audit, be accurate with your own records. When I was a kid, my parents saved every receipt. They itemized to the penny. They claimed every legitimate deduction they were owed. Now, I’m a bit of a perfectionist with my own taxes, but I’ve never had the IRS come beating my door down. Why not give your kids the same peace of mind?
Teach your kids tax preparation basics. Let them sit beside you while you fill out tax forms. If you have older kids, this process gives them a jump start on learning to do their own taxes. At the very least, they’ll be familiar with tax terms when you’re through. What if kids don’t want to sit in on your tax sessions? Ask for their help in navigating the IRS website. They’re bound to pick up a little something in passing.
Put most of your refund in savings. If you’re on a limited income, it can be tempting to spend every penny of your tax refund. The kids need clothes, you need a new pair of shoes; Before you know it, your tax dollars are spent. Don’t pitter away your kids’ future. Teach them to plan for it by putting the majority of your tax refund into savings. Take it one step further by saving for something in particular, like their college education. Your tax return can act as a learning lesson for your kids or a bad example. The choice is up to you.
More from Jaipi:
Five Smart Habits of Successful Kids
Raising Kids Who Think Outside the Box
Giving Kids Choices: Good Strategy or Bad Decision?