Digital Payment For Pocket Money Rising In The UAE

 Digital Payment for Pocket Money Rising in the UAE

Digital Pocket Money in the UAE: The New Generation of Card Payments

With the start of the new school year, more and more parents in the United Arab Emirates are choosing to give their children pocket money electronically rather than in cash. In Dubai and other parts of the UAE, apps and prepaid cards that allow children to spend easily, safely, and with traceability are becoming increasingly popular. This change is not only for convenience but also to cultivate financial awareness and enhance parental control.

The Decline of the Cash Era

Cash use is gradually taking a back seat in many families. Although still accepted as a payment method, it actually brings many inconveniences—especially when exact payment cannot be made due to lack of change, or when delivery drivers cannot provide change. In contrast, digital solutions are fast, convenient, and provide instant feedback to buyers and parents.

More and more students report that they find using cards more advantageous. For example, a high school student living in Dubai said he used to regularly receive pocket money in cash but always had to ask his parents to pay for online food orders and then repay them in cash. Over time, the lack of change and constant requests became increasingly awkward. When his friends started paying by card, he wanted one too. Now, he uses his own digital card and can even organize competitions with friends where the loser pays digitally.

Convenience for Parents

For parents living in the UAE, electronic pocket money not only provides a way to give money but also ensures financial education. For example, a UAE mother said her son's card is linked to her bank account, allowing her to set transfer amounts, conditions, and timing. Through a mobile app, it only takes a few clicks to complete.

Payment history is also displayed in the app: she can see exactly how much her child spent, when, and where. If she feels he is shopping too much or spending in inappropriate places, she can immediately suspend the card's use. Therefore, not only is financial control strengthened, but educational opportunities are also provided.

Digital Currency and Responsibility

Of course, besides the convenience of digital payments, new challenges arise. The "tap to pay" feature may make shopping too easy, leading to irresponsible spending. Therefore, parents play an important role in teaching children to use electronic money consciously.

For children, this form offers an opportunity to learn budgeting basics at a young age: how much money they have, how much they can spend, and how much they should save. Parent-set daily or weekly limits help ensure children do not exceed allowed amounts while giving them freedom to make decisions.

Apps and Platforms

Several digital financial platforms in the UAE offer opportunities for minors. Apps like Botim or various new banking services allow parents to connect with their children, set personal spending limits, and track transactions instantly.

For example, a father living in Dubai reported that he has been using the Botim app with his children for over six months. The budget is set by him; for example, when they go shopping, he tells them: "You have 100 or 200 dirhams to use, and you need to manage within this range." This helps children see how much money they have and how to manage it.

The app sends push notifications when shopping, so parents always know when, where, and how much was spent. This is not only safer than cash but also more convenient—because the phone is always at hand.

Pros and Cons

Advantages:

- Easy to track

- Card can be easily blocked if lost

- No need to handle change

- Easy to shop and order online

- Can be used for educational purposes—cultivating financial awareness

Risks:

- Convenience may lead to overspending

- False sense of security: fraud can also occur in the digital realm

- Increased technological dependence for children

- Lack of "real money" feeling may prevent them from understanding the weight of spending

Electronic pocket money is gradually becoming part of education and family life in the UAE. In Dubai and other emirates, parents are not only pursuing the convenience brought by technology but also see the use of digital currency as a conscious educational tool. The transparency, simple spending control, and practicality provided by apps all help children develop financial awareness from an early age.

As the world increasingly moves toward cashless transactions, it is natural for the next generation to learn how to handle money digitally—they can do so in a safe, parent-supervised environment.