How to teach your child the value of money in Dubai

It can be difficult to teach your child to be frugal whilst growing up in Dubai – the luxury capital of the Middle East –  Leena Parwani, founder and CEO of iCareinsure Insurance Brokers offers her tips on teaching your child to save money in Dubai…

1. Negotiate and make them feel accountable.

Kids are motivated when they receive rewards. Every single time your child asks for a toy, money or something else they want, instead of just giving it to them, do a barter deal and say can have what they want in exchange for helping around the house or doing well at school. I ask my son to complete a certain number of pages of handwriting exercises in return for being allowed to download a new game. Now he has developed a habit where, if he wants something, he can always come back to me offering a task in exchange for his ‘reward’. A recent study by Moneywise stated the importance of children working to earn their pocket money.

2. Help them set a goal.

Is there something they really want, such as spending money for a vacation or a new gadget? Encourage them to save up pocket money or money they earn from helping around the house in order to buy it.

3. Make sure they know the value of money.

Talk to your kids more often about money, mentioning how much things cost and what could have been saved.

4. Give them the responsibility of managing small amounts of their own cash.

Give your child some money and ask them to spend it on making someone happy. You will be surprised at the ideas they come up with.

5. Open a bank account for them.

If your child is under six, they should be encouraged to ‘pay the piggy’ every day with small coins. As soon as they are at a stage where they understand money, open a savings account for them. Let them deposit money into their account and speak to relatives and friends about their habit. If there are other children in your extended family of a similar age, one option is to create a mini competition for them all, based on managing a weekly budget and a target of weekly savings.

6. Go on a financial field trip in Dubai.

Have your child make all of their deposits in person at the bank. Get them to take the money right up to the counter and get used to dealing with the teller. If it is their first visit, call ahead and see if someone can give you a tour of the vault – kids are often fascinated with that. When you get home, log onto the bank’s web portal and show them where the money is and how it shows up in their account after they make a deposit.