For parents looking to train their kids on the different aspects related to earning and paying taxes, one of the excellent options available is to use a reward and penalty system. Parents can reward their kids whenever they do a good job and punish them for their silly acts. Parents can actually make a list of taxable offences and inform their kids. Kids have to be taught the process of taxing, which they would encounter later in their professional life. The different silly or forgetful acts that can be taxed in the form of penalties include not keeping their tables and desks in a clean fashion, not switching off the lights and television before going to sleep, hurting other kids or elders, not completing the homework and so on.
In order to make the kids understand the phenomenon of earning and taxing, parents can give some amount like $15 or $20 at the beginning of every week. Whenever the kids engage in acts that are in the taxable list, they would be deducted a particular amount as penalty. A tax sheet can also be maintained by the parents, where in all the taxable offences and the corresponding amount that has been taxed would be recorded. Parents can also introduce incentives for kids who got out of their way and do certain extra ordinary tasks. This would encourage the kids to take up more such tasks. There are also excellent online resources available such as this kid’s reference to finance.
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