Imagine your dad has a special card called a "Kharcha Card," with a tiny mountain painted on it like the one that is seen from our house. It's like having a stash of money stored inside, but you can't see them. When your dad needs to buy something like a shiny gadget or a warm cloth for you at Bhatbhateni, I show the Kharcha Card to the shopkeeper. It remembers how much I spent, just like you count and keep small pebbles in your pocket!
Now, as your dad works hard every month, he uses some of his own rupees to refill the magic stash inside the Kharcha Card. This way, the Kharcha Card is always ready for the next special purchase. Using the Kharcha Card wisely, like buying your school supplies or helping your grandmother at the Bhatbhateni, earns your dad a “good man card” – like a report card showing how responsible your dad is with his money.
You have a piggy bank where you keep your special coins and maybe even some paper money, right? Well, a credit card is like a grown-up's piggy bank. Instead of coins, it has a special kind of money called credit. Your dad is allowed to borrow money from the bank just like you always borrow my phone to play games and then return it later to me.
But to get a credit card, you have to show to the bank that you are responsible and can pay them back with interest. Here’s the requirement to get credit card in Nepal:
But remember, you have to pay back the borrowed money from the bank. You do this each month with your own money, the money that you will earn when you grow up. So, a credit card is like a grown-up's piggy bank that lets you borrow money from the bank to spend it on your required things, but you have to be responsible and pay it back to get that “good man report” that lets you keep using it!
But to get this magic Kharcha Card, you need to show the bank you're responsible, just like you wouldn't let someone borrow your favourite toy if you knew they wouldn't give it back. So, the bank asks for a few things:
Do you understand now? I will tell you more in our next session. Remember, Kharcha Card is a good friend if you treat it well and can be your worst enemy if you dont treat it well!
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