Michelle Singletary
Thursday, April 19, 2007 2:43 PM

You might be feeling relieved right now. Your tax return is done and now you're ready to put those files away.

But wait. Don't do anything more until you read my column today. For example, if year after year you are getting a large refund, that may not be good money management.

If you are still fuming about even having to pay taxes, you might enjoy reading this piece from last Sunday's Outlook section by Kevin Hassett, director of economic policy studies and a senior fellow at the American Enterprise Institute: "Why We Pay Without A Whimper" (Apr. 15).

"Today taxes eat up about 30 percent of income," he wrote. "And like our ancestors, we don't believe that our money is particularly well spent."

As Hassett points out, a Washington Post-ABC News poll taken last April found that Americans believe that 51 cents of every tax dollar is wasted.

"But where's the outrage?" Hassett wonders. "Most of us don't even own muskets, and the few of us who have revolted against the IRS are settled safely behind bars, to popular acclaim. Which makes the U.S. tax system, ugly as it is, something of a marvel. It raises revenue without raising a ruckus. A simpler and more efficient system would undeniably serve everyone better, but the current hodgepodge is so entrenched as to have become a political third rail, and attempts to reform it almost always fail or are gradually reversed."

He's right. But I do get outraged at tax cheats. If I'm paying my fair share, so should others. However, as Post reporter Lori Montgomery wrote there is a large tax gap in part because of unreported small business income "Unpaid Taxes Tough to Recover" (Apr. 16).

By the most recent estimate, unreported business income accounts for nearly a third of the $345 billion tax gap.

Kids and Money

What do your children know about money? Can they budget? Are they saving money? Do they really know that the money coming out of the ATM is not free?

Don't be so quick to say yes. In Sunday's column, I talked about a recent survey by Charles Schwab and the Boys & Girls Clubs of America that found not only do many teens lack basic personal finance knowledge, but the majority think they'll be making six-figure salaries. The latest Census figures show only 14 percent of households earn incomes of $100,000 to $200,000.

That, my friends, means a lot of those teens will reach adulthood not knowing how to manage their money, and will be stunned they have a lot less to live on than they expected.

While you don't want to discourage your kids from dreaming big, you should spend some time while they are young teaching them how to live within their means.

To see what others are teaching their kids about money read Margaret Webb Pressler's Sunday article "Kids Get Money-Smart" (Apr. 15).

Also, be sure to join me on Monday, April 23 at Noon Eastern Time for a live online discussion about kids and money. Several entrepreneurs who have created personal finance products to teach young children about money will join me. These products were featured in a recent column as part of the Color of Money Book Club for April.

And speaking of those products, some readers question whether it was financially prudent to buy piggy banks.

"Do you see any irony at all in spending some $20 or more on piggy banks for kids when they could make one themselves?" wrote Gretchen Powers of Springfield, Va.

Hey, if you're a crafty person, feel free to sit down and have your kid make a piggy bank. But I don't see anything wrong with spending money on a product that will aid you in teaching your child about money.

The Kid Moocher

In an e-letter I wrote two weeks ago, I asked what you thought about several money situations. One focused on a parent who felt exploited by her son's 12-year-old friend, which was included in a recent Ask Amy. The boy ordered the most expensive appetizer and entree on the adult's menu.

"If the adults wanted to put a price tag on their invitation, they could have done so, along the lines of, 'OK, kids, we're just here for a snack, so please keep your order under $10,'" wrote Ken Campbell of Sacramento, Calif. "If you invite someone to dinner, they will assume that they can order what they want off the menu."

Tonya Wilson, a Lanham, Md., resident, said she has no problem with letting someone know when he or she is over their limit. "I would have stopped him at the appetizer and told him what his spending limit is," she said.

Most of you who wrote in found fault with the parent, not the kid moocher. If you're paying the bill and want to set limits you should let your guest know before they order. He who has the money makes the rules I say.

Some Things in Life Are Free

As Christina Breda Antoniades writes in last week's Sunday Source, "tax time can make anyone wish for a way to put a little more 'free' in the Land of the Free." So she's helping you find some things that are truly free.

In "Zip. Zilch. Zero. Our Handy Guide to All Things Free" (Apr. 15), Antoniades compiled a guide of Washington-area and national free finds "from Shakespeare to sandwiches to baby wipes, all gratis."

You are welcome to e-mail comments and questions singletarym@washpost.com. Please include your name and hometown; your comments may be used in a future column or newsletter unless otherwise requested.