Answer: All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
Zakah is due on the money that reached Nisaab (Minimum amount liable for Zakah while possessing it) and a full lunar year elapsed while possessing it, even if the money is saved for basic needs. As this money has a value, which is the Illah (Cause) for Zakah, then it is liable for Zakah. Thus, it is included within the general meaning of the Sharia texts indicating that Zakah is an obligation. However, if the owner of this money had spent it before a full lunar year passed while possessing it-for example, he bought a car or a house-then no Zakah is due on the money or the item bought with it. And Allah The Almight Knows Best.