Fatwaa ID: 1418

Question:
Assalamu alaikum wr wb

Wanted to know about how particular we should be with kids money, eg. Eidi etc.

1. Should we segregate each child’s money separate or can it be saved together.
2. Can it be put to any investment and partly be utilised by others? Like example in land or gold.
3. When the child becomes baligh then what should be done?

Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

It is necessary for the parents to be particular with the wealth of their children. This includes, money, gifts and jewelry. The parents are the caretakers and guardians of the children. They must use the money and wealth in the best interests of the children. The answers to your queries are as follows,

1. It should ideally be kept separate. If it is put together, then you must make note of how much belongs to whom. You cannot put them together and decide for it to belong to all of them equally.
2. It may be put into investments for growth. That is in the best interests of the child. It cannot be used by others for their own benefit.
3. When the child becomes baaligh and of understanding, you may give him authority to use his funds. You may also maintain guardianship until he is fully discerning. However, it should be noted that zakaah will be due from the time the child becomes baaligh.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
https://askthemufti.us/

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

__________________
Disclaimer

Darul Iftaa New York answers questions on issues pertaining to Shari’ah. These questions and answers are placed for public view on askthemufti.us for educational purposes. The rulings given here are based on the questions posed and should be read in conjunction with the questions. Many answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation. 

Darul Iftaa New York bears no responsibility with regard to its answers being used out of their intended contexts, nor with regard to any loss or damage that may be caused by acting on its answers or not doing so.

References and links to other websites should not be taken as an endorsement of all contents of those websites. 

Answers may not be used as evidence in any court of law without prior written consent of Darul Iftaa New York.