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Understanding jam’iya or social savings clubs
The Kingdom of Saudi Arabia conducted a study in 2018 that looked into consumers’ money habits. One of the interesting data showed how consumers mainly rely on banking institutes to save money, but the next most popular option is through a social savings club! If you’re looking for an effective way to save money, we’ve…
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How to manage your child’s Ramadan allowance
As we approach the halfway mark for Ramadan, parents often find themselves navigating various aspects of the tradition, from fasting to prayers and charitable giving. However, Ramadan also presents an excellent opportunity to impart essential lessons about financial responsibility to our children. One way to do this is by managing your child’s Ramadan allowance wisely,…
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Fulfilling financial obligations: understanding zakat and sadaqah
As young Saudis embark on their journey towards financial independence and prosperity, it’s essential to not only focus on personal financial goals but also fulfill their Islamic obligations of Zakat and Sadaqah. In this post, we’ll delve into the significance of Zakat and Sadaqah in Islam, their role in shaping a balanced financial life, and…
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Understanding tawarruq: a simple guide
In the realm of Islamic finance, the term ‘tawarruq’ holds significance as a financial arrangement designed to meet the principles of Shariah law. For those unfamiliar with Islamic finance, the concept may seem complex, but in simple terms, tawarruq is a structured transaction that enables individuals to access liquidity without violating Islamic prohibitions on riba…
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Takaful vs. Conventional Insurance
In the world of finance, insurance plays a crucial role in safeguarding individuals and their assets. For young minds, understanding the basis of insurance can be a stepping stone to financial literacy. Two prominent concepts in the insurance realm are Takaful and Conventional (Western) Insurance. Takaful – What’s that? Imagine a group of friends who…
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What is profit and loss sharing?
Finance is a fundamental aspect of our lives, and understanding different financial systems is essential for making informed decisions. Islamic finance is a unique and ethical approach to managing money, and one of its core principles is the concept of profit and loss sharing (PLS). In this post, we will explore what PLS is and…
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What is takaful?
Insurance is a widely accepted concept that provides financial protection in case of unforeseen events. However, for Muslim individuals and communities, conventional insurance may raise concerns due to its non-compliance with Islamic principles, such as avoiding interest (riba) and uncertainty (gharar). To address these concerns, an alternative insurance model known as “Takaful” has emerged. In…
