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Hadith Explanation
Family Counts in Sadaqah 
The Messenger of Allah (sal Allahu alaihi wa sallam) said: “What a Muslim spends on his family, for seeking the pleasure of Allah, is also counted as charity.” [Bukhaari]
Allah (subhana wa ta’ala) advises man to first be kind to himself and to the people in his home, then to his larger circle of relatives, and then to all human beings. 
When a man provides for his wife, children, parents and any other dependents, he is worshipping Allah (subhana wa ta’ala) by obeying Him. If his intention is to fulfill the responsibilities Allah (subhana wa ta’ala) has assigned to him, he gains the reward of performing good deeds, by paying for his family’s food, clothes, housing, medicine, etc.
Allah (subhana wa ta’ala) has forbidden both miserliness and extravagance (wasteful spending). We should spend in a balanced manner, keeping well away from these two extremes.
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