2ONFinance
Back to Taxes

Chapter 11 - What Are Taxes?

Community Budget

Decide how a pretend community budget could be divided.

5-8 min
Free lesson

What you'll learn

  • Explain taxes neutrally
  • Connect taxes with public services

Taxes are money governments collect to help pay for public services and infrastructure. Public services can include roads, schools, libraries, parks, emergency services, and other community needs.

People can disagree about the best way to use public money. This lesson is only about the basic idea that a community budget has limited money and many possible uses.

Budgets have tradeoffs

If more money goes to one area, less may be left for another area unless the total budget changes.

Pretend community

A town has $100 in pretend public money. It must choose how to support services like roads, parks, libraries, and safety.

Interactive exercise

Build a community budget

You have $100 and must keep at least $10 unassigned for unexpected community needs.

Starting money

$100

Spent

$0

Remaining

$100

Nice planning. You still reached the savings target.

Lesson Progress

Finish the activity to complete this lesson.

2 On Finance provides general educational information and does not provide individualized financial, investment, tax, or legal advice.