One of the rude awakenings when you get your first job is how much smaller your first paycheck is then you expected it to be. Especially in California money is taken out for many different things and it can seem a little disheartening because you thought you would have more in your own right. This is the perfect time to talk to your kids about all the different things that taxes are used for and how the Bible tells us you need to pay taxes! Jesus even said, “Give to Ceaser what is Ceaser’s.”
Romans 13:6-7 For because of this you also pay taxes, for the authorities are ministers of God, attending to this very thing. Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed.
So when you are talking to your young adult about how they have less money in their paycheck then they thought they would, hit some key points:
1) Talk about the difference between gross pay and net pay.
2) Tell them about how the W4 form they filled out when they took the job was to determine what kinds of taxes they have to pay.
3) Talk about how tax brackets( what percent you pay) is determined by how much you make.
4) Talk about what the taxes actually pay for, like parks, schools, medical care for elderly.
5) Lastly, when your child has a job help them to set up a 10% direct deposit into their savings account.
If you like what you read, check out our children’s book, Hooked on the Book, on this website. It is great for parents and kids because it provides the Big Story of God’s miraculous plan for His children in all 66 books in the Bible including colorful illustrations, rhymes and a surprise on every page.