How to best finance education is a matter of major concern, both because of the cost of education, and because of its relationship to national progress and security. Confusion about educational funding is not necessary if the major questions that are of special concern to all citizens are identified. This document outlines basic elements for understanding present purposes and methods of public school finance. Subjects include: (1) Why Do We Provide Schools? (2) Why School Costs Have Grown; (3) Is Enough Being Invested in Education? (4) Should Our Investment in Education Be Increased? (5) Can the Economy Finance an Increased Investment in Education? (6) The Local School Budget; (7) State Support of Education; (8) Local Support of Education; and (9) Federal Support of Education. The narrative on each subject is accompanied by a graph or chart to aid in explanation. Tables listing current expenditure per pupil by state in 1988 and school revenues by source (federal, state, local) in 1988 are appended. (LAP)