In almost every grade level, there is a social studies lesson on taxes, which is not an easy concept for young students. My lesson is interactive with the students participating. Everyone who earns money must pay taxes, so I've set up a money earning project for teachers to use. This is included in this lesson. I used the model with 3rd and 4th grade students for a month long project and it worked well. When I was teaching full time, I used the money system for the entire school year. After students have earned money and paid money (suggestions included), the lesson on taxes can be given. Students must figure out how much of their classroom money will go to taxes. Since students below 5th grade don't learn about percents, my form is for a set amount of tax by the amount of money each student has. If I did this lesson for 5th grade or higher, I'd assign a percent--10% good--of income for the taxes owed. After students figure out their taxes and the teacher collects that, there are examples for the teacher to use with volunteer students showing how our taxes are used. I found that the kids had a good idea of tax usage after we did the interactive lesson. The lesson ends with the children receiving tax refunds!