AbūUmama relates that Allah’s Messenger ﷺsaid, “O Children of Adam! It is better for you to give away in charity what is more than your need and to keep it with you is bad, though it is not reproachable to retain just sufficient for your sustenance and need and to begin with you should spend on those for whom you are responsible.”
(Sahih Muslim)
Islam lays much emphasis on the importance of charity in the life of a believer. The reason for this is that therein lie the blessings of Allah as well as His will. Here Allah’s Messenger highlights the importance of spending the surplus in charity and deprecation of hoarding wealth.
Charity is encouraged in Islam while hoarding of wealth deprecated. With miserliness and greed for wealth, money is blocked. Thus money loses its utility while charity develops man’s spiritual and moral powers and purifies the soul, and cures him of the greed of wealth and material gains, making him acquainted with the higher values of life, which do not go with miserliness and greed. This is besides the fact that his surplus money or wealth will be used to fulfil the various pressing needs of those in need, and thus help the cycle of human life on earth going.
Charity has a great effect on regulation of self. Most important among persons on whom wealth should be spent are those whose care is our responsibility. It should not happen that outsiders are benefited and our own people are neglected.