Session 5 · Money, Values & You

Banking Basics 🏦

Where your money lives — and how it works for you

6th Grade Financial Literacy · 90 minutes

🏦 What banks do 💸 Interest & Riba 🎭 Bank roleplay 🌙 Islamic banking

Today's Plan

📋 Here's What We're Doing

🎯 Opening hook — what do you think banks do? (5 min)
📖 What banks actually do (15 min)
📖 Interest and Riba (15 min)
🎮 Bank comparison + roleplay (20 min)
📖 Islamic banking (15 min)
✍️ Journal (10 min)
👋 Recap & preview (10 min)

Knowing the plan = no surprises 👍

Opening Hook

Inside a Bank 🤔

Raise your hand if you've been inside a bank.

What do you think they do with your money while it's sitting there?

      Most people don't know — but it matters.

      Today we look inside.

Lesson 1 · What Banks Do

3 Jobs of a Bank

🔒 Safe-keeping

Your money is safe, insured, and accessible anytime

💳 Lending

Banks lend your deposited money to others who need it

🌍 Moving Money

Transfers, payments, wire to anywhere in the world

Lesson 1 · How Banks Earn Money

The Money Flow 💰

You deposit $100 → bank keeps it safe
Bank lends your $100 to a borrower
Borrower pays back $110 (your $100 + $10 interest)
Bank gives you $102, keeps $8 as profit

Everyone agreed to this upfront. That's how conventional banking works.

Lesson 2 · Interest

What Is Interest? 📈

Interest you EARN

Bank pays you for keeping money with them

Example: Save $100, earn $2/year

Interest you PAY

You pay a fee when you borrow money

Example: Borrow $100, pay back $110

Interest is the "price" of borrowing — or the "reward" for lending.

Lesson 2 · Riba

Riba — Why Islam Says No ❌

Riba (ربا) = usury; guaranteed interest regardless of outcome
If the borrower loses everything, they still owe interest — unfair
Quran [2:275]: "Allah has permitted trade and forbidden Riba"
Riba creates debt traps — exploits those who are already struggling

      Islamic finance says: share the risk AND the reward.

      If you profit together, you lose together. That's justice.

⚡ Brain Break

Stand & Think 🧠

If you had $1,000 to keep safe — where would you put it?

Tell your neighbor. Do you agree?

30 seconds. Go!

🎮 Activity — Bank Comparison

Piggy Bank vs. Bank vs. Islamic Bank

Fill in the comparison chart together:

🐷 Piggy Bank — safe from theft? earns interest? Riba? insured?
🏦 Regular Bank — same questions
🌙 Islamic Bank — same questions

      Then: Mini-roleplay — Customer borrows $50 from Regular Banker vs. Islamic Banker.

      Which feels more fair?

Activity Debrief

🔍 What Did You Notice?

What's the main difference between regular and Islamic banking?
In the roleplay — which banker would you rather borrow from?
Does it matter whether the bank shares the risk with you?

      Key insight: Islamic banking isn't just about avoiding interest.

      It's about fairness — sharing risk and reward equally.

Lesson 3 · Islamic Banking

How Islamic Banking Works 🌙

🤝 Mudarabah

Profit-sharing partnership. Bank invests your money; you share profits AND losses.

🛒 Murabaha

Bank buys item for you, sells at agreed markup. Asset-backed — no pure interest.

🏘️ Musharakah

Joint ownership. Both parties invest and share proportional gains/losses.

Lesson 3 · Murabaha Example

Murabaha in Action 🛒

You need a $500 laptop but don't have the money now.

Regular Bank

Lends $500. You pay back $550 over 6 months. Interest = $50 guaranteed.

Islamic Bank

Buys laptop for $500, sells to you for $530 over 6 months. Clear markup, asset-backed.

The difference: Islamic bank owns the asset first. It's trade, not a pure money loan.

Lesson 4 · Credit Unions

Credit Unions 🤝

Member-owned cooperative — you are an owner, not just a customer
Profits go back to members (lower fees, better rates)
Community-focused — often serves local neighborhoods
Not-for-profit structure = different incentives than big banks

      Credit unions aren't Islamic banks — but they share the community-first value.
    

✍️ Journal Time

Take 8 Minutes...

      "Would you rather keep your savings in a piggy bank, a regular bank, or an Islamic bank? What matters most to you?"
    

📝 Think about: safety, growth, ethics, access
No wrong answer — explain your reasoning

Session 5 · Wrap Up

What We Learned Today 🎉

✅ Banks keep money safe, lend it out, and move it around.

✅ Interest = price of borrowing. Riba = exploitative guaranteed interest.

✅ Islamic banking uses profit-sharing and asset-backed trades instead.

✅ Credit unions are member-owned alternatives to big banks.

✅ Fairness = sharing risk AND reward equally.

Next session: SMART SPENDING — get the most value from every dollar 🛒