UAE Children Swap Cash for Cards

Digital Pocket Money in the UAE: The New Generation Pays by Card

As the new school year begins in the United Arab Emirates, more and more parents are deciding to give their children's pocket money electronically rather than in cash. In Dubai and other parts of the UAE, applications and prepaid bank cards that allow children to spend easily, safely, and trackably are becoming increasingly popular. This change is not only about convenience but also about developing financial awareness and strengthening parental control.

The Era of Cash is Waning

Cash usage is increasingly taking a backseat in many households. Although still an accepted means of payment, it poses many inconveniences in practice—especially when a lack of small change makes precise payment impossible, or when a delivery driver cannot provide change. Digital solutions, in contrast, are fast, convenient, and provide instant feedback to both the buyer and the parent.

More and more students are reporting that they find using bank cards more advantageous. A high school student living in Dubai, for example, said that he used to regularly receive pocket money in cash, but for online meal orders, he always had to ask his parents to pay on his behalf, and then he would repay them in cash. Over time, the lack of small change and constant asking became increasingly awkward for him. When his friends started paying with cards, he also wanted one. Today he uses his own digital card and can even organize challenges with friends where the loser pays—digitally.

Convenience for Parents Too

For parents living in the UAE, electronic pocket money provides an opportunity not only to give money to their children but also to ensure financial education. An Emirati mother, for example, reported that her son's card is linked to her own bank account, allowing her to set the amount, conditions, and timing of the transfer. All this is done through a mobile application with just a few taps.

The payment history also appears in the application: she can see exactly how much her child has spent, when, and where. If she feels that he is shopping too much or spending in inappropriate places, she can immediately suspend the card's usage. Thus, not only is financial control strengthened, but also the educational opportunity.

Digital Money and Responsibility

Naturally, alongside the convenience of digital payments, new challenges also arise. The "tap-and-pay" feature can make shopping all too easy, which can easily lead to irresponsible spending. Therefore, parents play an important role in teaching their children to use e-money consciously.

For children, this form provides an opportunity to learn the basics of budgeting at a young age: how much money they have, how much they can spend, and how much they should save. The daily or weekly limit preset by parents helps ensure that the child does not exceed the permitted amount while also giving them freedom in decision-making.

Applications and Platforms

Several digital financial platforms in the UAE offer opportunities for minor users. Applications like Botim or various neobank services allow parent-child connections, individual spending limits, and instant transaction tracking.

A Dubai-based father, for example, reported that he has been using the Botim application with his children for more than six months. He sets the budget himself; for example, when they go shopping, he tells them, "You have 100 or 200 dirhams available, and you need to manage within that." This helps children see how much money they have and how they can manage it.

The application sends push notifications when a purchase is made, so the parent is always aware of where and how much was spent. This is not only safer than cash but also more convenient—since the phone is always at hand.

Advantages and Risks

Advantages:

- Easy traceability

- The card can be easily blocked if lost

- No need to deal with small change

- Online shopping and ordering are easily executed

- Can be used for educational purposes—developing financial awareness

Risks:

- Risk of overspending due to excessive convenience

- Misleading sense of security: fraud can also occur in the digital space

- Children’s technological dependence may increase

- Lack of "real money sense" may cause them not to perceive the weight of expenses

Summary

Electronic pocket money is increasingly becoming a part of the educational and family life in the UAE. In Dubai and other emirates, parents are not only seeking the convenience that technology offers but also see a conscious educational tool in using digital money. The transparency, easy spending control, and practical use provided by applications all contribute to the development of children's financial awareness from a young age.

As the world moves increasingly toward a cashless direction, it becomes natural for the future generation to learn to handle money digitally—and they can do so in a safe, parent-supervised environment.

(Source: Based on reports from parents in Dubai.)