What is the ruling on organizing a competition within the family at home concerning jihad, such as toy gun shooting challenges and other types of training?

Contests other than those involving hooves, arrows, and spears are a matter of scholarly disagreement. The majority of scholars prohibit them, but the ruling that is adopted for fatwa (legal opinion) is permissibility, as long as the competition is in a permissible field and its objectives and means are legitimate. This is what has been approved by the Islamic Fiqh Academy.