Adding to the above, I have a few points I think are important when teaching your own kids:
Most important: Kids get bored easily! If you try spend hours teaching self rescue, how to set up and connect lines, kite care and packup etc before they even allowed to try the board then they will loose interest.
I have taught mine the most important things: if you feel uncomfortable: pull your safety!
If you crash: Let go the bar!
Note that in the above post, I have already mentioned I have the luxury of a perfect learning spot and they can stand up at all times.
At the moment, we kite together and use the standard signals drilled into them over 6 years of Nippers for "I need help" or "Come to me"
There will come a time in the next few years when they will want to hit the waves or go out kiting with friends. That is the time to go: "Sure buddy, as soon as you can demonstrate self rescue, proper setup etc"
Untill then, we, as responsible parents do the hard yards (setting up, packing down, maintaining 3 sets of gear), keep an eye on our kids and bail them out when they need it.
This will be a similar analogy across most sports: your 10 year old doesn't change the oil in his MX bike, grease the bearings on his BMX, check tyre pressures etc until they are older. Until then, we are the "supervisors" and responsible for all that stuff, let them be kids and enjoy the stoke as long as they know how to pull the safety, hit the brakes, stop moving forward, it's all part of learning