With Monday, April 15, being America’s official Tax Day, a recent Cash App Taxes survey highlighted that 54% of Gen Zers reported filing their taxes has brought them to the brink of tears. Unfortunately I’m a part of that statistic this year.
As I tried to summon my last minute novice accounting abilities to tackle a stack of W2’s and a 1099 over the weekend, I was reminded of the dull truths that adulting is hard and money is never free. This year-five years into filing as an independent adult, first year filing as a freelancer along with several jobs-I approached my taxes with a naïve mindset. I focused only on the reassuring idea of a glorious tax return that would simply fall onto my lap, and could pay for a great vacation. I heard of some of my peers with nine-to-five jobs eager to file their taxes because they knew they were going to get money back. I guess I assumed I deserved money back too and kept this promising vision of some extra coin hitting my bank account in April. I just thought that since I was working so much, I must have overpaid taxes and will get the fattest return ever-no need to check my pay stubs even though I’ve never officially worked as a freelancer before. I mean I’ve been working nonstop so don’t I deserve a couple bands back? Welp that’s not how it works. In reality that’s not how anything works-and as I broke down in tears over my computer with Turbo Tax showcasing a colossal number followed by “OWED” on the screen, I couldn’t help but think that life’s not fair.
With my newfound dread, I channeled my inner child and started blaming everyone and everything for this misfortune-other than myself. As the tears turned hot from rage, I called my mom to reassure me that the world sucks. Instead I faced another truth: I’m not good with money! I mean I’m good enough to get by paying my bills on time, but when it comes to accruing substantial wealth, financial literacy and understanding how to manage money from a successful person’s perspective-I suck! And as someone that strives to be successful while young and have my own business one day, I cannot afford (pun intended) to continuously be bad with my money.
Looking back at this 54% of Gen Zers that are in tears like me, I think we all must have similar situations however. While it’s important to have self accountability, I still wonder why so many young adults find taxes to be so complex and confusing. I asked some friends to reassure me that I’m not the only one who feels this way and I’m not. In fact the common sentiment was, why aren’t we taught this in school?
I find that to be such a valid question. Why aren’t we taught more about taxes, financial literacy, investing, credit, etc in high school? If school is to prepare us to be model adult citizens, wouldn’t these classes be essential for our development into adults?
Not only would having regular high school classes surrounding financial literacy help with understanding taxes as an adult, I think understanding the tips and loopholes to creating lasting wealth can help any and everyone develop their own path to becoming successful and break generational poverty. Also, debt is a weighing burden on many young adults with student loans, and having a better sense of financial literacy may help young people overcome overwhelming situations.
So why aren’t taxes and financial literacy taught in high school normally? I mean it’s almost like we’re getting set up for failure if you ask me.
The Tax Crisis Institute notes in their article, “Why Don’t Schools Teach Taxes?” that people believe taxes are too complex to be taught in school due to the fact that teachers are not tax professionals, and that everybody can file their taxes differently. I personally think this is a poor argument to not teach taxes. Teachers still file taxes and have been filing them much longer than young adults/high schoolers. I don’t think there’s any excuse why the basics of taxes still can’t be taught-especially when once again, over half of young people are reported to be overwhelmed during tax season. For instance, teachers could break down a W-4 for students, and teach them accurate tax withholding when starting a new job. If teachers don’t feel comfortable teaching taxes, maybe trained financial experts should be incorporated into the curriculum, or we could even start out with financial literacy field trips-anything to give these kids a kick start into the adult world of economics because frankly, I feel lost and stupid.
America has one of the most complex tax codes in the world. Many people hire experts to do their taxes for them, but what if you can’t afford to do that?
Classes in financial literacy are also necessary as we enter this growing age of digital currency. The way we make and handle money is changing, and the next generation should be taught about managing electronic currency.
Why are we left to our own devices when it comes to financial literacy? If I had taken a class in credit, I would probably utilize those teachings on a daily basis. Instead I had to take Calculus or Trigonometry-which I have virtually never used in my life.
Maybe I sound naïve but from someone with recent experience, it seems like the Department of Education has their priorities out of whack. Instead of arguing about what books to ban, maybe we should get kids as financially literate as possible so it doesn’t feel like such a dog eat dog world out here for them as adults. This seems so practical to me that I can’t help but think it almost goes against a certain agenda.
Anyways let me know in the comments what you think!
