Financial Literacy for Vocational High School Students: The Importance of Taxation and Accounting in Everyday Life

Abstract

This community service activity was carried out with the aim of improving financial literacy among Vocational High School (SMK) students, especially related to basic understanding of taxation and accounting that is applicable in everyday life. Financial literacy is an important skill that needs to be possessed from an early age, considering its role in making wise and responsible economic decisions. In this context, understanding taxation and accounting is crucial because it can help students understand the financial dynamics that apply in everyday life. This activity was carried out at SMK 1 Cawang, East Jakarta, and was attended by 30 students from the accounting and finance departments. The method used in this activity was interactive education through material delivery, group discussions, case studies, and simulations of simple transaction recording and tax reporting. The material provided included an introduction to basic accounting concepts, the importance of personal financial recording, types of taxes, and procedures for filling out tax forms that are relevant to individuals and small business actors. The results of the activity showed an increase in students' understanding and interest in the importance of managing finances systematically and fulfilling tax obligations. In addition, students also showed enthusiasm in participating in the simulation and were able to identify the application of accounting and tax principles in real contexts. This activity is expected to be a real contribution in forming a young generation that is financially literate, tax aware, and has basic accounting skills as provisions for facing the world of work and everyday life.