If one joins a Muslim academy he can learn Muslim culture and he can also learn the Muslim language. One can get detailed information regarding the concept of bait ul maal in Islam. The Quran can be recited in order to learn Islam and by learning about Islam one can get the understanding of the concept of bait ul maal. The Quran is in Arabic language and one can learn Arabic language by joining these Muslim academies. One can learn Arabic and know that bait ul maal is in fact an Arabic word that means the residence of wealth or money.
Bait ul maal was developed as a financial institution in the Islamic states, this financial institution used to administer the taxes. The bait ul maal was established in the era of the Islamic caliphate. It was formed as the royal reserves for sultans and caliphs; another purpose of bait ul maal was to manage personal finances and the expenditures of the government. Moreover, the bait ul maal was used to manage the distributions of zakat for the public works.
The bait ul maal was utilize to deal with the economical matters of Islamic state like revenues etc. During the reign of Hazrat Muhammad (SAW) a permanent bait ul maal was not established, no reserves were kept, the revenues that were accumulated were immediately distributed. During the caliphate of Hazrat Abu Bakr bait ul maal was also not kept as there was no prominent need for the reserves to be kept. Whereas during the caliphate of Hazrat Umar the needs changed as the conquests started increasing and larger quantities of revenues were generated. Previously salaries were not paid but with the increasing men in the army and the increasing revenues, Caliph Umar started paying salaries to the fighting men.
As the revenues began to increase Hazrat Umar established a permanent bait ul maal after consulting with his companions. A central treasury was established in Madinah. Accounts department was included. Later the provincial treasuries were also set up and salaries and stipends were paid. For the royal treasury a separate building was built that was the bait ul maal. Coins were made for the transactions.
Pension and welfare concepts were introduced as part of zakat. The taxes collected included zakat and they were given to all the needy people whether they were orphans, widows, poor, disabled or elderly.
The concept of bait ul maal was included permanently to make the Islamic state a welfare state. Reserves of food were also kept for natural disasters and famine. No money was allowed to be wasted on luxuries that were unnecessary so that the money can be used for the welfare of the people. With the permanent concept of bait ul maal, the concept of social security was introduced by Hazrat Umar when he was the Caliph. Insurance for unemployment was introduced by Caliph Umar at those times long before it appeared in the western world. Retirement pensions were introduced for the elderly people. With the permanent establishment of bait ul maal, the concepts of public ownership and public trusteeship were also introduced.