An example of a course in which there is no benefit: he buys land for them, knowing that its value will not increase and that there is no benefit in buying it. But it was offered to him, and he felt too embarrassed to refuse the person who offered it, so he bought it for the orphan with the orphan’s money. This involves no benefit and may even result in a loss.
An example of the most beneficial course: two commodities are offered to him. One is expected to yield a profit of twenty percent, while the other is expected to yield a profit of forty percent. He should therefore buy the commodity that will yield forty percent.
Likewise, if the choice is between investing in capital exposed to many risks and capital exposed to few risks, then he must invest the capital exposed to fewer risks.
May he give something away from the minor’s wealth? No.
May he give charity from it? No, because there is no benefit in this for the minor.
May he clothe him in a new garment for Eid? He may buy a garment for two hundred riyals, even though he could wash the old garment for twenty riyals. Buying the new one is more beneficial, because it is in the child’s interest to rejoice with the people and to wear a new garment.
When Eid al-Adha comes, should he buy an udhiyah sacrifice for him from his wealth, or not?
The answer is: according to our present custom, no, because the orphan does not care whether a sacrifice is offered on his behalf or not. However, Shaykh al-Islam, may Allah have mercy on him, stated that a sacrifice should be offered for the orphan from his wealth, because that was the established custom. In earlier times, an orphan would take pride when a sacrifice was offered, so this fell under the heading of spending on him.