My friend Audrey came down to visit the other night with her 2 girls and we were playing outside. Gwen and Rosie set up a "Rock Candy Store" and lined up all these rocks to sell. Audrey asked how much for some rock candy and Gwen said $2.70. Audrey commented on how expensive the rock candy was and Gwen replied "Well, we have to use the money that we make from selling you the rock candy to pay another company so we can buy more rocks and then we'll use those rocks to make more rock candy." (in other words, reinvest the profits - very clever!). Then she added my favorite part: "The rock candy was going to be $2.00 but I need to charge you more so that I can give the 70 cents to the President." (i.e. pay taxes)
I was cracking up - several weeks ago I had taken Gwen to the Dollar Store to spend some money she had earned and she wanted to know why she had to pay more than $1.00. I explained about taxes going to President Obama (easier than explaining the entire government to a 5 year old) and how he uses the money to build schools and fix roads and help Darcy get therapy, etc. So, I told her, stores get to keep the most of the money but then they have to send some to the President. I thought it was so funny that she reapplied that little lesson weeks later when she set up her own store!
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