UAE parents open bank accounts for kids to save Eidiya | World News – Times of India

As Eid continues to be a time of joy and tradition in the UAE, many parents are giving a modern spin to the age-old practice of Eidiya, the act of giving children money during festive celebrations. Instead of letting kids spend all their cash gifts, a growing number of families are opening bank accounts for their young ones to store the money safely and teach the basics of financial responsibility. These small steps, parents say, can help children develop long-term saving habits and an early understanding of money management.

UAE kids are opening bank accounts to learn savings

Parents have started saving Eidiya for their children from a very young age. Some toddlers receive up to Dh5,000 each year from relatives during Eid. Instead of spending the money, parents deposit the full amount into separate bank accounts in their child’s name. Separating the child’s funds from household expenses helps avoid confusion and builds a clear savings mindset early on.

Monthly saving builds financial discipline

Some families use both Eidiya and monthly allowances to build savings for their children. Kids as young as two have their own bank accounts, with parents depositing fixed monthly amounts—often around Dh100—into each account. During Eid, when children receive Dh300 to Dh400 in gifts, they are allowed to spend a small portion, while the rest is saved. This system teaches consistency and financial discipline from an early age.

Teaching through transparency and tracking

For other families, keeping clear records of their children’s finances is part of the learning experience. After Eid, parents count the cash gifts with their children and decide together how much will be deposited and how much can be spent. Having a structured process around savings helps kids understand financial planning, goal setting, and responsible spending.

Preserving joy while building responsibility

Even with a focus on saving, families are mindful not to take away the festive excitement. Parents usually allow children to keep a small amount of money to buy something they enjoy. This encourages children to associate saving with joy and empowerment, rather than restriction, reinforcing the value of thoughtful spending.

Laying the foundation for future habits

Across the UAE, more families are using Eidiya as an opportunity to nurture financial awareness. By linking a culturally significant tradition with practical money management, they hope to instill habits that carry through into adulthood. Opening a bank account becomes more than just saving money—it becomes a foundation for a lifetime of financial responsibility.