11+tax-planning

Never Pay to Receive a Prize

A genuine prize never requires the winner to pay anything to receive it. Any request for a fee before a prize is released is a scam, however small the amount.

In this lesson

Never Pay to Receive a Prize is part of Year-Round Tax Planning. This preview shows how tax-planning connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.

Think about this money choice

Bola is told she won a prize but must pay 500 in local currency first before they release it to her.

How it works

A genuine prize does not require the winner to pay anything before receiving it. Any message, call, or instruction that asks you to pay a fee — however small — before a prize is released is a scam. The 'prize' funds collected from many victims are the actual income of the fraudster.

Try a real-life example

Real-life money moment: Bola is told she has won 200000 in local currency but must pay a 5000 in local currency 'release fee' first. The logic presented: pay a little to receive a lot. The reality: the 200000 in local currency does not exist. Bola pays 5000 in local currency and receives nothing. The scammer moves on to the next victim. The fee is the product.

Activity preview

Try the challenge

Use what you learned to complete this short challenge.

Try one real money action

Open Tasks and submit proof for one task, or open Requests and make a deposit request. Parent approval can happen later.

Quiz preview

Never Pay to Receive a Prize means:

You can pay small fees for prizes but never fees larger than 5000 in local currency

Legitimate winnings are never conditional on making an upfront payment

You should delay payment and negotiate a lower processing fee first

Prize fees are acceptable when the prize is substantially larger than the fee

A company says your prize is worth 500000 in local currency but needs a 10000 in local currency release fee. You should:

Refuse and walk away — no legitimate prize requires payment first

Pay 10000 in local currency since the 490000 in local currency net gain is still significant

Ask for written confirmation before sending the 10000 in local currency fee

Negotiate the fee down to 5000 in local currency before agreeing to pay