UAE: Bank accounts for Eidiya? How some parents teach children value of saving

As the spirit of Eid brings families together across the UAE, many parents embrace a modern approach to an age-old tradition of saving their children’s Eidiya in dedicated bank accounts.

Eidiya, a cherished cultural practice in which children receive gifts often in the form of money from relatives during Eid Al Fitr and Eid Al Adha, has long been a source of joy for little ones. But today, many parents also see it as an opportunity to teach the value of saving from an early age.

Amna Abdulaziz Al Nuaimi, mother of two-year old Aisha, told Khaleej Times she deposited her child’s Eidiya into a bank account as soon as possible. “She gets around Dh4,000 to Dh5,000 annually from family and friends on special occasions such as Eid,” Amna said. “I save it all for her. I plan to keep saving all the money she receives until she’s old enough to spend it wisely.”

For Amna, separating her daughter’s funds from her own is key. “It’s important to have a clear way of saving your children’s money,” she said. “If you mix it with your own, you forget what’s theirs and what you’ve already spent.”

Fatma Al Tenaiji, a mother of three, shares the same philosophy. She has opened individual bank accounts for her children Mohammed (10), Meera (6), and Ghanem (2) and deposits both their monthly savings and Eidiya gifts.

“Each month, I transfer Dh100 into each child’s account. During Eid, they usually receive Dh300 to Dh400 each. I let them enjoy 25 per cent of that, and the rest goes straight into their savings,” said Fatma.

Um Hasher opened accounts for her children Hasher (7) and Almaith (5) early on because she felt they deserved a place that was truly theirs to collect and manage their money. She explained that Eid and other festive occasions often bring cash gifts from all relatives: uncles, aunts, grandparents, and even neighbours.

 “A bank account helps us track exactly how much our kids receive,” she said. “Everything is organised and transparent. We don’t lose track of the amount, and it helps us teach the kids how to divide their money between spending and saving.”

Um Hasher makes it a point to document everything right after the Eid celebrations. “I usually gather all the money, record the total, and then decide with the child how much we’ll deposit into the account and how much they can keep to spend on simple treats,” she said. “I never want to take away the joy of Eid from them, so I always let them keep a small amount to buy something they like while the rest goes into their savings.”

By adopting these habits, parents across the UAE are not only protecting their children’s financial gifts but also instilling early lessons in money management. Many say starting small, like saving Eidiya, can plant the seeds for future financial responsibility.