It's tax season...and the perfect time for a teachable money moment.  The next time you're out shopping with your child, hand her the receipt after you've made the purchase. Ask her to find where the tax is listed then see if the receipt indicates the tax rate. If the tax rate is not there, tell her what your local rate is.

Then have her read the total amount of tax paid for that purchase. If she's looking at a food receipt, discuss that most food items are not taxed.

Then ask her if she knows what taxes are and why we pay them. For older kids, discuss local, state, and federal taxes.

Examples of local taxes: property tax, sales tax (on goods and services)

Local taxes go toward public schools, police/fire departments, local roads, improve parks.

Examples of state taxes: sales tax (Alaska, Delaware, Montana,New Hampshire, and Oregon do not have sales tax), license fees, fuel tax, personal income tax.

State taxes go toward public schools, police/fire departments, some health and welfare benefits.

Examples of federal taxes: payroll tax, federal income tax

Federal taxes go toward the military, social security benefits, health and human services, Treasury Deptartment (interest on debt).

Although the topic of taxes is a little more involved than this quick synopsis, getting our kids to understand the basics of taxes is an important first step.