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7-10financial-citizenship

Why governments need revenue

Discover why governments need revenue and why it matters for your financial safety and decisions.

In this lesson

Why governments need revenue is part of What Are Taxes?. This preview shows how financial-citizenship connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.

Today’s money mission

Imagine a country with no taxes. Who pays the police? The teachers? The doctors?

What you need to know

Roads, schools, hospitals, security — none free.

Real-life example

Real-life money moment: Think about a time when why governments need revenue affected a money decision.

Progress Penguin connection

In Progress Penguin, complete or review one practical action connected to “Why governments need revenue.” Use this lesson objective: Understand why governments need revenue and apply it to real money decisions. Record what you checked, the evidence you used, and your next step.

Activity preview

Choose the best money move

Use what you just learned. Choose the option you can explain.

Quiz preview

Without taxes, the government would:

Struggle to fund roads, schools, hospitals
Be richer in practical terms
Be the same over the longer term
Disappear given the circumstances

your country's federal budget includes spending on roads, education, health, and security. Where does most of this money come from?

Oil revenue only in this situation as a general rule
Oil revenue, taxes (VAT, company tax, income tax), and borrowing — a diversified revenue base
Foreign aid exclusively under normal conditions in practical terms
Printing new money as a reliable approach in practical terms