Why Don't They Teach You About Taxes In School?

dirt diggler

Hopefully this doesn't get moved to the "Off-Topic" section ... but it has a lot to do with business

But why aren't taxes taught in schools? In the big scheme of things, is this less important than Drama or Art classes (I have nothing against the arts and fully support them --- however ... well, you get the gist??)

I'm sorry Peter Pan, but unless you buy yourself another four years in Never never land after high school --- "success" and "survival" in the real world is gonna be determined by your financial skills --- makin it and keepin it

So why is this important aspect of life and business left out??

copusbuilder

That's a good point. Perhaps there is really no one out there that understands them

I wish schools did more to teach business??

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Gordo

Good question Dirt. Financial responsibility should be taught in elementary schools. Most importantly it should be ingrained by parents too.

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Looks like some pros were here.

mdshunk

That used to be part of the home economics course that they taught the girls along with sewing and cooking when I was in school. I'm not even sure if they teach home economics now.

I know in my area, there's a big push for financial literacy among students. These folks: http://www.jumpstartcoalition.org/ seem to be at the front of it. I know that these skill sure would have helped give me the jumpstart that would have been most helpful. From what I've been reading in the paper, some states (mine included) is considering some sort of 'Financial Literacy Act' to add such things to the curriculum.

Debookkeeper

Most of the highschools have a few business classes that touch on the subject - but they are electives. My son took a "Money & Personal Finance" class that taught the kids how to handle a checkbook, and reconcile, different kinds of interest, investing your money, etc. When he graduated highschool, he still proceeded to blow all his money. ...I put that to an immediate halt!! I took all those business classes when I was in highschool too. The accounting 101 class my daughter is taking gets into payroll taxes, so an understanding of withholding taxes it taught. Certainly not enough to prepare anyone, and I can teach them all I want - but what kid wants to listen to their mother.

Btw - my daughter wants to be an accountant

Mike Finley

Isn't that what college is for? From your post I am guessing that you think college is out of the question for anyone going into the trades? I agree as long as they want to be an employee or a tradesman all there life or at least for a very long time and then slowly try to be in business for themselves and learn everything in the school of hard knocks, but if they want to be a business owner, they need a college education, business in construction is no different then business in any other field.

Mike Finley

I can still remember in 5th grade back in 1977 one day the teacher passed out all these check books and we spent about 3 hours going over what it was and how it worked. I've never heard of anybody experiencing that since.

Double-A

Business math is not that complicated for the most part. Takes a 10th grade math education to deal with some of it, and a 5th grade at most for the rest of it. If you can do long division, you can do most business math.

Why kids are not taught the basics is beyond me. We're willing to teach them how to do differential equations and calculus, which is infinitely less useful to most jobs than a simple business accounting class would be.

As far as the checkbook balancing goes, this seems to be a great mystery to many folks. I have a friend that can add, subtract and divide fractions in his head quick as a wink, but he still brings his statement and checkbook to me once a month for help in reconciling.

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"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

Mike Finley

This shouldn't be a mystery. The USA population is what 300 million? What is the percentage of employees to business owners in the work force? 100,000 to 1? 10,000 to 1? I have no idea what the true number would be, but it's obvious the percentage of people who are going on to be business owners is pretty tiny compared to those who will go on to be employees. Public education is there for the masses and the lowest common denominator, it's job is to establish a broad and generic base of education, college and beyond is there for specialization.

copusbuilder

I was going to respond to this post in more detail.....but perhaps it's best to plead the 5th

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Mike Finley

Hey go for it. I'm not stupid, I am fully aware that I'm posting this on a board that is filled with construction business owners, the vast majority of them with nothing more than a high school diploma. Self evident that there is plenty of evidence that you don't need an education to be a contractor, even a successful contractor or even to create a large contracting business doing millions of dollars in revenue.

The question isn't whether you can do it or not with no additional education, the issue is how much longer does it take, how much harder is it, or more to the point how much easier would it be to be a successful contracting business owner if you had a background that covered business? You learn and become proficient in your trade skills pretty quickly and pretty early. But for the majority, they then spend years and years, maybe their entire life never mastering the facets of business, such as taxes, marketing, finance etc... For a lot of us the more successful you become at contracting the less the trade skills are as important, you start using more subs, employees, lead carpenters, your focus falls less and less on individual and day to day trade skills and day to day business skills are your tools you start having to use every day.

The fact that this thread is started regarding somebody bringing up the issue of wouldn't it be so much easier for everyone if they taught you college level courses and unique and targeted information in high school shows that everyone knows that the more education you have means a smoother road to success.

So we can side track the issue and go down the road of the self-made man. There is no doubt that anyone with enough drive and ambition can get as successful or even more than any bright graduate of Harvard. But be realistic because taking the average uneducated contractors income and comparing it to the averages of even the most dim witted Harvard business school grad and they aren't even going to be in the same ball park.

Dustball

I did the checkbook thing when I was in 7th grade back in the early 90's. I also sewed a pillow too

copusbuilder

Mike, That seems like a 180 from the previous post

Of course education is important. But to say

I agree as long as they want to be an employee or a tradesman all there life or at least for a very long time and then slowly try to be in business for themselves and learn everything in the school of hard knocks, but if they want to be a business owner, they need a college education, business in construction is no different then business in any other field.

I think that statement is ludicrous and insulting to many.

And assuming that diggler thinks anyone in the trades cannot go to college seems to be putting words in his mouth.

Now drop and give me twenty

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mdshunk

I'm not so sure that learning about taxes and balancing a checkbook is very unique or targeted. Well all have to deal with that sort of stuff.

Mike Finley

Not meant to be insulting. Every baby born has the chance to become successful. The reality is the majority won't.

#1 Either you believe that information will make your goals attainable faster or you don't.

#2 If you do believe this then it's a simple process to understand that if information is the key to success then the faster you aquire information the faster your success can be attained.

I'm not going to get into an arguement over the meaning of the word "the" as so quickly so many times happens here.

Double-A

The point of my post was not to make businesspeople out of everyone, but we all deal with businesses. So, why should the economics of business be a mystery or a college course? Much of what applies to business math-wise will also apply to running a home or personal finances. Knowing some terms and concepts can only be a good thing. Education never killed anyone, despite what my son says.

Math is math, only the nut on the end of the pencil changes.

__________________
"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

Mike Finley

Double A have you ever read the 'famous' Rich Dad/Poor Dad book?

Kiyosaki fills it with examples from his poor dad (who is a school teacher) about how the public school system is set up to turn out employees.

Melissa

I agree with you Dirt. Learning some real life skills would've been nice- like about credit cards, and just basically some good skills that would've landed a decent job, so people could support themselves immediately after high school, for those who couldn't afford college.

For me, I took all these college prep and AP classes, for absolutely NO reason, because my parents moved away the minute I graduated, so I had to support myself, AND try to pay for and go to school- it was impossible.

dirt diggler

Nope --- waaaaay out of context. Not even relevant to what i was saying. Out of coffee this morning??

The post isn't concerning business exclusively

But everything like paying property taxes, quarterlies, credit cards, investing. Not only do bus. owners struggle with learning this --- but everybody else does too.

And why should this be reserved for higher education?? Why not start it in elementary school along with reading?? Again, I'm all for finger painting, PE, history, biology (well, maybe not bio) --- but why not teach sound financial skills??

Mike, I do agree with you that schools breed employees. I think that's right on target.

Double-A

Agreed. The business of taking care of personal business and taking care of a real business are close to one in the same math and skills wise, only the scale and details change to any large degree.

As for schools turning out employees, I'd say that is right on the money, but they do a poor job of that, sorry to any one with loved ones in teaching profession. I'm not taking shots at them. I think its the folks that determine curriculum that need a dose of reality.

__________________
"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006