Is the expenditure that is not essential, and that may fall under the category of extravagance, considered charity, as stated in the saying of the Messenger of Allah, peace and blessings be upon him, "Indeed, a man's expenditure on his family is counted as charity"?

The Quran and Sunnah encourage spending, such as in the verses: (And upon the father is their provision and their clothing according to what is reasonable) and (Let the man of prosperity spend from his prosperity). And the Prophet, peace and blessings be upon him, said: "The most excellent dinar a man spends is that which he spends on his family."

If a man spends on his family, intending it as an act of devotion, it is charity for him. Allah has forbidden extravagance and squandering. Therefore, spending beyond what is needed is squandering money in an undue manner. Squandering is spending money in an undue manner, and there is no squandering in doing good deeds. Whoever spends money on excessive desires beyond what is needed is a squanderer.