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Financial Tip

Oliver Wendell Holmes, former Justice of the United States Supreme Court, once said, "Taxes are what we pay for a civilized society." Although people work hard to meet their needs and the needs of their families, there are some things they cannot purchase themselves. For example, the taxes paid to state and local jurisdictions help pay for police and fire protection. These taxes also pay for the operation of the local governments, and for local recreation areas such as parks and other public facilities.

On the national level, federal income taxes help pay for defense for the country. They also pay for capital facilities such as highways and other transportation services, and to help those who are poor or ill. These are all services that individual citizens cannot purchase the way they can buy food and clothing and the other necessities of life. When people live together in a society, all of its citizens bear the cost of providing such services. Taxes are the means by which the society raises the money to cover these public costs.

The United States Department of the Treasury has a number of fact sheets that can help people better understand the various taxes imposed in the United States. These include: Economics of Taxation explains how taxes support government services and benefit the country's citizens. Writing and Enacting Tax Legislation explains the process for developing and passing legislation into law.

In addition, Lesson 1.5 of the Yes, You Can Curriculum includes classroom examples of how taxes are collected and used by the various jurisdictions.

Source: Adapted from United States Department of the Treasury.

Putting a Value on Valentine's Day

Celebrating Valentine's Day used to consist of sentimental traditions such as exchanging cards, a heart shaped box of candy or flowers. Today it seems that no sooner have we rung in the New Year than ads appear encouraging us to buy increasingly expensive gifts for those we love to make sure they know how much we care about them. Although retailers want you to buy into this notion, you can win the heart of your special someone without taking out a loan.

Looking for a unique, and affordable, way to give something more original than a dozen roses, a gift of chocolates or an expensive dinner out. Here are some ideas for thoughtful gifts that will delight your Valentine and go easy on your wallet.

Make Valentines a week-long event
Start a week in advance by giving your sweetheart a single flower - such as a long-stemmed rose in a vase with a message about a special memory the two of you shared. Add another flower or two to the vase along with a different special memory every day for the next week. By the time Valentine's Day arrives, you'll have a beautiful vase filled with fresh flowers and - even more important - some precious memories.

Fix a special dinner at home
Take the time to find a great recipe, shop in advance and prepare for a leisurely evening. Then light some candles and turn on the romantic music. Rent a favorite romantic movie to add just the right touch to cap off the evening.

Make someone your "Secret Sweetheart"
Valentine's Day offers an opportunity to do something nice for others. Do you know someone who might be lonely or in need of some cheering up, perhaps an elderly neighbor or a distant relative? Make their day by sending them an anonymous "Secret Sweetheart Valentine" and continue to send them cards and notes the remainder of the year. Then present them with a small gift at the holidays as you reveal that you're the Secret Sweetheart. You're sure to put a smile on their face!

Act like a kid again
When it comes to friends and neighbors, forgo the expensive chocolates and instead buy the candied hearts you used to get as a child. Use a red ribbon to tie them up in small bundles and pass them out to your neighbors or co-workers. For an even bigger hit, tie an old fashioned, inexpensive child's Valentine cards to the beribboned bundle.

No matter what your budget dictates, put the right value on Valentine's Day by being smart with your money while still creating special memories for your family, friends and loved ones.

Teachable Moments

When you want to purchase an item, do you usually buy the first one you see or do you do some comparison shopping? Sometimes there are some really great bargains that you just happen to come across. Retail shops and other businesses rely on you to make the impulse buy. Marketers are very savvy about playing with your emotions. Try to remove emotions from your shopping. It can be difficult. However, if you just take a little time to do some research, you might just end up with a better product for less money. With the Internet, it's easier than ever to comparison shop.

Share examples of some comparison shopping you've done and the benefits of your extra effort. Share examples of times when you didn't comparison shop and reasons why. Document your discussion.