In the UAE, parents are modernizing the Eid tradition of Eidiya, which involves giving children money during festive celebrations. A growing number of families are opting to open bank accounts for their young children instead of allowing them to spend all their cash gifts. This approach not only helps in storing the money safely but also teaches children the basics of financial responsibility. Parents believe these small steps can nurture long-term saving habits and an early understanding of money management.

Some families have begun using both Eidiya and monthly allowances to build savings for their children. Kids as young as two years old are getting their own bank accounts, with parents regularly depositing fixed monthly amounts, often around Dh100. During Eid, children typically receive between Dh300 and Dh400 in gifts, and they are allowed to spend a small portion while saving the remainder. This system instills consistency and financial discipline from an early age.

For other families, maintaining clear records of their children’s finances plays a critical role in the learning process. After Eid, parents count the cash gifts with their children and collaboratively decide how much will be deposited and how much can be spent. This structured approach to savings helps children grasp financial planning, goal setting, and responsible spending.

While focusing on saving, families also strive to preserve the festive excitement of Eid. Parents usually encourage children to keep a small amount of money for personal purchases, promoting the idea that saving can be associated with joy and empowerment, rather than merely restriction. This reinforces the value of thoughtful spending.

Throughout the UAE, an increasing number of families are seizing the opportunity presented by Eidiya to enhance financial awareness in their children. By merging a culturally significant tradition with practical money management skills, they aim to instill habits that will last into adulthood. Opening a bank account becomes more than just a means to save money; it lays the groundwork for a lifetime of financial responsibility.