In a world dominated by hustle culture and the ever-present pressure of capitalism, it’s easy for Muslims to feel caught between two extremes: the obsession with worldly wealth and the glorification of poverty. But what if there’s a third, more balanced path? A path where money becomes a tool for empowerment, community building, and an everlasting legacy?
In a powerful conversation with legal expert and community advocate Tasnim Saeid, we explored how to approach wealth management, marital finances, and estate planning through a clear and authentic Islamic lens. Drawing on her extensive experience in family law and her current role as in-house counsel for AWQAF Australia, Tasnim provides timeless wisdom that can transform your relationship with money.
This guide will distil her key insights into actionable steps, helping you move from a mindset of scarcity to one of lasting impact and sadaqah.
Why Islamic Financial Literacy is Non-Negotiable Today
For many in our community, especially those from migrant backgrounds, the financial conversation has historically revolved around survival, living paycheck to paycheck and securing a stable foundation. While this was a necessary stage, our community has matured. We are now having more sophisticated conversations about generational wealth, strategic investment, and long-term financial planning.
Tasnim Saeid, drawing from her decade in family law, sees financial literacy as a form of crucial “early intervention.” She notes, “I was in a space where I was sort of at the litigation end of things, where a crisis had already happened… The space I’m in now is more of an early intervention space.”
Financial literacy isn’t just about numbers; it’s about agency. It is the ability to make informed decisions, protect yourself and your family, and actively participate in building a stronger community. It’s a non-negotiable skill in the 21st century, essential for navigating a world of digital currencies, complex investments, and economic uncertainty.
Finding the Middle Path: Wealth vs. Asceticism
Islam provides a beautiful balance regarding wealth. It’s not a black-and-white issue. We have profound examples of companions who were both deeply spiritual and incredibly wealthy, like Uthman ibn Affan (RA), whose investments in community infrastructure are still benefiting people today.
The Islamic framework gives us:
- Clear Boundaries: The principles of Halal (permissible) and Haram (forbidden) create an ethical foundation for all financial dealings.
- Wide Parameters: Within those boundaries, Islam encourages innovation, entrepreneurship, and wealth creation for the betterment of society.
This ethical model is more relevant than ever. As global consumers become more conscious of corporate responsibility and ethical sourcing, highlighted by movements like BDS, the Islamic emphasis on just and non-exploitative dealings offers a timeless guide.
Navigating Finances in a Modern Muslim Marriage
Money is often a sensitive topic in marriage, but it doesn’t have to be. By approaching it with Islamic principles of partnership and clarity, couples can build a foundation of trust and shared success.
Start with an Open Conversation, Not Assumptions
Tasnim points out that the Islamic marriage contract is, from a legal perspective, a contract (mu’amalat). And like any contract, it benefits from clear terms and open negotiation. Instead of falling into cultural assumptions, couples should proactively discuss their financial future.
Key questions to discuss with your partner:
- What are our shared financial goals and values?
- What are our individual contributions, both financial and non-financial?
- How do we value non-financial contributions, like caregiving and household management?
- What are our expectations for managing income, savings, and debt?
Clarity on these points prevents misunderstandings and ensures both partners feel heard, valued, and secure.
Empowering Women with Financial Agency
Too often, women are either completely removed from financial decision-making or pushed into a state of hyper-independence due to past trauma. Neither extreme is healthy. Islamic teachings champion a balanced approach where women are informed, empowered, and have agency over their financial affairs.
Even if one spouse takes the lead on managing finances, it’s crucial for both to be aware of the family’s assets, debts, and overall financial health. This isn’t about mistrust; it’s about responsible partnership and preparing for any eventuality, such as illness or death.
“The Khadijah (RA) Model: Where Business, Faith, and Family Align”
Khadijah (RA) is a timeless example of balanced excellence. As a highly successful and respected businesswoman, she oversaw significant wealth and major trade operations. Yet she was equally renowned for her role as a devoted wife and mother. Her life demonstrates that financial empowerment and strong family commitment are not opposing paths, but strengths that can thrive together in harmony.
The Ultimate Investment: Reviving the Sunnah of Waqf
While Zakat and Sadaqah are pillars of Islamic giving, Waqf (Islamic endowment) is a powerful, yet often overlooked, tool for creating a perpetual legacy.
What is a Waqf?
A Waqf is a voluntary, permanent, and irrevocable dedication of wealth for a specific charitable purpose. Unlike a one-time donation, a Waqf preserves the original capital and uses its profits to fund projects forever.
- It’s Perpetual: The principal asset is invested and never spent.
- It’s Irrevocable: Once dedicated to Allah, it cannot be taken back.
- It’s Impactful: Its benefits compound over generations.
The most famous example is the Well of Rumah, purchased by Uthman (RA) 1,400 years ago. That single act of charity has grown into date palm gardens, a hotel, and even a modern bank account in his name, continuing to serve the community in Medina to this day.
How You Can Establish a Waqf Today
You don’t need to be a millionaire to establish a Waqf. Modern innovations like the “Cash Waqf” model allow anyone to contribute, even with as little as $10. This amount is pooled with others, invested, and the returns are distributed to charitable causes you care about, from building mosques and schools to funding domestic violence services.
Planning for the Inevitable: The Islamic Will (Wasiyyah)
The Prophet Muhammad (ﷺ) said, “It is not permissible for any Muslim who has something to will to stay for two nights without having his last will and testament written and kept with him.” (Bukhari)
Despite this clear guidance, many Muslims delay or neglect creating a will. An Islamic Will is not just about distributing assets; it’s a final act of faith and responsibility.
Why You Need an Islamic Will (Even If You’re Young)
- Legal Compliance: Without a will, your assets will be distributed according to secular state law (intestacy), which does not align with Shariah inheritance rules.
- Fulfilling Obligations: A will ensure that any outstanding Islamic debts, such as unpaid Zakat or Mahr (dower), are settled from your estate.
- Spiritual Legacy: It allows you to dedicate up to one-third of your estate to non-heirs, such as a charity or a Waqf, creating a final act of Sadaqah Jariyah.
- Clarifying Wishes: You can specify your wishes for your Janazah (funeral), burial, and the guardianship of your minor children, preventing conflict and confusion among family members.
Your will is your final voice. It ensures your Islamic values are respected, and your obligations are fulfilled after you’re gone.
Turn Your Intention into Legacy
True Islamic financial literacy is about more than just wealth accumulation. It is about becoming an active agent of change for yourself, your family, and your community. It’s about viewing money through the lens of amanah (trust) and transforming it into a vehicle for good in this life and the next.
As Tasnim Saeid reminds us, “Turn your pet peeves into legacy… into solutions.” Instead of just identifying problems, we have the tools within our rich tradition to build the infrastructure, support systems, and lasting institutions our community needs to thrive for generations to come.
Your journey to building a legacy starts now. Start the conversation with your loved ones, plan your finances with intention, and explore the timeless power of Waqf.