Abū Umama (may Allah be pleased with him) relates that the Holy Messenger (may Allah bless and greet him) said, “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.”
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 the Exalted as well as His will. Here in this hadith the Holy Messenger of Allah (may Allah bless and greet him) highlights the importance of spending the surplus in charity and deprecation of hoarding wealth.
Charity is encouraged in Islam while hoarding of wealth deprecated. By miserliness and greed for wealth money is blocked. Money loses its utility by being locked up in the safe 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 spiritual development and regulation of self, which can be realised by anyone who has given thought to religious issues. Most important among persons on whom wealth should be spent are those whose care is our responsibility and others come afterwards. It should not happen that outsiders are benefited by our generosity and legitimate demands of the people of our house are neglected.