payments to be made every month. For example lend them some money for their basic needs every month and deduct a certain sum of money as maintenance costs, which can be tantamount to EMI payments. Also, explain the difference between savings and debt. You donít need to expect them to understand the exact workings of credit cards or loans. However, the simple idea that when you pay by credit card today, you should repay this tomorrow should be understood by them. Tell them that exceeding limits on a credit card or not paying your bills and loans on time can lead to serious repercussions in a long run. Do not make the concepts too heavy and gradually educate them using real life examples.
Showing financial discipline yourself, being patient and educating yourself are important requisites before you educate your kids. Keep reminding them these tips as and when you can so that they realize that you are seriously interested in educating them about money.