In this electronic age it is important to talk to your children about the basics of how credit cards work.
Learning to understand these concepts at a basic level can help your child to become responsible with money at a young age. It is probably a very valuable lesson that can help children achieve financial success for their entire lives.

Some supermarkets now have a self checkout section. This is the perfect place to start the lesson. Get the children to help you scan your items and get them to watch as each price comes up. They can watch as you scan your credit card to pay for the items. Then explain to them that you receive a credit card bill each month that must be paid for out of your bank account.

Encourage children whilst shopping to compare prices for similar items and let them help make the best choice based on price, quality and quantity.

Including children in the shopping process can help them grasp the somewhat difficult concepts of electronic banking and credit card use. It will teach them that a credit card is not an endless supply of cash and that it must be paid for with money which we have to work for.