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Learning Corner · Mojito explains · from Volume 1

What are taxes? Explained for kids

The short answer

Taxes are part of the money you earn that you hand over to the government. The government uses it to pay for things everyone needs: roads, schools, hospitals, the fire department. Mojito calls taxes the shared food bowl of an entire country: everyone puts something in, and everyone gets to eat from it, even those who have nothing right now.

Mojito, the trickster, guinea pig with a black mask from The Business Guinea Pigs

Good to know: we explain how things work in Germany, where the books are set. Rules and numbers can be different where you live.

From the book

How the guinea pigs explain it in Volume 1: Wer kassiert mit? (Who Takes a Cut?)

What are taxes? Explained simply for kids

Mojito explains it like this: when you earn money in Germany, you give part of it to the government. That part is called tax. His picture for it is a shared food bowl. Every morning, everyone puts something in, as much as they can. And then everyone gets to eat from it, even someone who had nothing today or is sick. Taxes are the shared food bowl of an entire country.

Why do we pay taxes, and what are they used for?

Mr. Grey sums it up: a single family can’t build a road, a hospital or a fire department. If everyone chips in, it works. The road in front of the house, the school, the traffic light on the corner and the fire department are all paid for with taxes. His line on it: A community needs contributions.

Who collects the taxes?

The tax office (Finanzamt). Christian wants to know who actually makes sure that everybody really puts something in the bowl. Mojito’s answer: there’s a whole government office just for that, the tax office. And it always reads the fine print.

How long have taxes been around?

The ancient Romans were already collecting taxes more than two thousand years ago. They used the money, for example, to build roads all across Europe so traders could travel safely. When Daria asks whether it’s been bugging people for that long, Mr. Grey answers: It’s been holding people together for that long.

Three things to remember
  1. Taxes are the part of the money you earn that goes to the government.
  2. They pay for roads, schools, traffic lights and the fire department. No single family could pay for all that on its own.
  3. Taxes go all the way back to the ancient Romans. In Germany, they’re collected by the tax office, the Finanzamt.
The word in German

Steuer

tax

In the books, every paragraph is in German with the English right below it. That way you pick up new words in both languages along the way.

Your turn: take the quiz

No account, no score, nothing gets saved. Just tap an answer.

1. Who collects taxes in Germany?

2. What does the government use to pay for the street in front of your house and the fire department?

3. Who was already collecting taxes more than two thousand years ago?

The whole topic as a story

Volume 1: Wer kassiert mit? (Who Takes a Cut?)

Why taxes exist, who takes a cut and where the money goes. For kids ages 10 and up, bilingual German and English, 38 pages, illustrated in full color throughout.