Yusuf Ali Explanation:
In the Jewish Decalogue, which was given to a primitive and hard-hearted people, this refinement of Kindness, -to those in want and to wayfarers (i.e., total strangers whom you come across) finds no place. Nor was there much danger of their wasting their substance out of exuberance. Even the command "to honour thy father and mother" comes after the ceremonial observance of the Sabbath. With us, the worship of Allah is linked with kindness-to parents, kindred, those in want, those who are far from their homes though they may be total strangers to us. It is not mere verbal kindness. They have certain rights which must be fulfilled.
All charity, kindness, and help are conditioned by our own resources. There is no merit if we merely spend out of bravado or for idle show. How many families are ruined by extravagant expenses at weddings, funerals, etc., or (as they may call it) to "obliged friends or relatives", or to give to able-bodied beggars? To no one was this command more necessary than it is to Muslims of the present day.
Muhammad Asad Explanation:
(And give his due to the near of kin) In this instance, "his due" evidently refers to the loving consideration due to one's relatives (Zamakhsharl and Razi); those of them who are in a state of want are included in the subsequent mention of "the needy" (al-miskin).
(as well as to the needy and the wayfarer) Regarding this expression, see surah {2}, note [145].
(But do not squander [thy substance] senselessly) Lit., "with [utter] squandering" (tabdhiran) i.e., senselessly and to no good purpose. It is to be borne in mind that the term tabdhir does not relate to the quantity but, rather, to the purpose of one's spending. Thus, Ibn'Abbas and Ibn Mas'ud (both of them quoted by Tabari) defined tabdhlr as "spending without a righteous purpose" or "in a frivolous (batil) cause": and Mujahid is reported (ibid.) to have said, "If a man were to spend all that he possesses in a righteous cause, it could not be termed squandering; but if he spends even a small amount in a frivolous cause, it is squandering."
Javed Ahmad Ghamidi Explanation:
The implication is that just as a person spends on himself the blessings bestowed upon him by God, he should also spend them on his fellow brethren after fulfilling his personal and business needs. It is evident from the Qur’ān that two things are required for a person if he is to become a true servant of God: Firstly, one’s relationship with God should be established on the right footing. Secondly, this relationship with other human beings should also be established the same way. The first thing is achieved through the prayer which is the foremost expression of one’s love for God, and the second through spending in the way of God for this is the foremost expression of one’s love for one’s fellow human beings. The reward for this spending is also God’s love because whatever one spends he has it saved in the heavens, and in the words of the Prophet Jesus (sws), his heart too remains occupied at this place, (Matthew, 6:19-21). In this verse, it is said that spending in the way of God is the right of one’s relatives, orphans and the needy which must necessarily be fulfilled. It is evident from this mention that any slackness in fulfilling this right can make a person a criminal who extorts the rights of people. Thus, at another instance, the Qur’ān (9:34-35) has clearly stated that if a person starts amassing wealth while remaining indifferent to these rights, then this is hoarding and its punishment is the fire of Hell – from which every believer should seek refuge with the Almighty.
Tafsir Qur'an Wiki:
The Sūrah proceeds to include all relatives and the need to be kind to them, adding also the needy and travelers who may find themselves in difficulty. It expands on family relations so as to include all human bonds in their broadest sense:
Give the near kin their due, and also to the needy and the travelers in need. Do not squander your substance wastefully, for the wasteful squanderers are Satan’s brothers, and Satan has always been ungrateful to his Lord. But if you must turn aside from them in pursuit of an act of kindness you hope to receive from your Lord, then at least speak to them kindly. (Verses 26-28)
The Qur’ān makes it clear that the near of kin, the needy and stranded travelers have a right against us which may only be discharged by financial assistance. This does not come as a favour which one person does to another; it is rather a duty imposed by God and associated with worshipping Him alone. When we fulfil this duty, we are only discharging our responsibility, and cultivating a close relationship between ourselves and those to whom we give. The giver has no favour against the recipient, because he is only fulfilling a duty towards God.