Birthday celebrations at all the time if any till today were for the physically living persons and NOT the dead one in the past. First of all, keep in mind that Businessmen always try to create some scenario to trap people to buy their products for increasing their businesses and there is no exception for celebrating birthdays, wedding anniversaries and death anniversaries etc. In extreme harsh winter, it was very tough for businesses, so Businessmen created New Year celebration and Christmas, while the birth of Jesus (Peace-Be-Upon-Him) was in summer when the Dates are ripened and ready to eat, as per Quraan, (Ref: Al_Quraan_019:022-026). Remember: The direction of the Quraan is to save humanity by all means.

For celebrating someone’s birthday, we must know the EXACT DATE otherwise it will be FALSE birthday. We must promote the TRUTH not LIES. Till the end of 19th century, vast majority of people were not able to record their birthdays and they don’t have calendars in their home. Prophet Muhammad (Peace-Be-Upon-All-of-Him) was an orphan and had faced a tough life and it was hard to keep his birthday record. From the very beginning, historians and writers of Seerah have differed on the date of birth of Prophet Muhammad (Peace-Be-Upon-All-of-Him), so how can one find the true date out of these numerous opinions.

Different views regarding the date of birth of Prophet Muhammad (Peace-Be-Upon-All-of-Him):
10th Muharram: Abdul Qadir Jilani
2nd Rabi ul Awwal: Ibn Abd al-Barr
5th Rabi ul Awwal: Ameer ud din
8th Rabi ul Awwal: Ibn al Qayyim, ibn e Hazm, Az Zuhri , Ibn e Dihya
9th Rabi ul Awwal : Muhammad Suleman Mansurpuri, Mubarakpuri , Shibli Nomani, Mahmud Pasha Falaki, Akbar Shah Najeeb Abadi, Moeen ud din Ahmed Nadvi, Abul Kalam Azad
10th Rabi ul Awwal: Abul Fida, Abu Jaafar al Baaqir, Al Waqadi , Al Sha’bi– 10
12th Rabi ul Awwal: Tabari, ibn e Khuldoon , Dr hameedullah , ibn e hisham, ‘Allama Abu’l-Hasan ‘Ali ibn Muhammad al- Mawardi, ibn e ishaaq
17th Rabi ul Awwal: Shia view; and they also believe that it was Friday
22nd Rabi ul Awwal: Also attributed to ibn e Hazm
Ref: http://islamandpsychology.blogspot.ca/2011/02/date-of-birth-and-date-of-death-of.html

First of all, we couldn’t find any clear references from the Quraan and Authentic Hadeeth on Celebrating Birthday or Anniversary. Here we need to do in depth analysis for each of these, keeping in mind it is not causing a Psychological impact on our family including kids as well as not getting close to shirk as well.

The origin of birthday Prophet Muhammad (Peace-Be-Upon-All-of-Him) (Mawlid) observance dates back to the period of the Fatimids (Ismaili Shia Islamic caliphate, b/w 1909-1171 in Egypt) and it was celebrated in lands under their control. The Ottomans (in Turkey) declared it an official holiday in 1588.

Celebrating Birthdays of any Key Figures, e.g. Prophet Muhammad, Jesus, Moses etc. (Peace-Be-Upon-All-of-Them) as well as any political or religious leaders is totally forbidden due to chances that it may lead towards Shirk (associating partner with Allah), (Ref. Al_Quraan_009.031).

Celebrating Death Anniversaries of any One is totally forbidden. Life is very short, and we need to concentrate on educating our kids and helping our community. If someone has extra money then he/she should help the needy and get Great Reward from Allah.

Remember: For each of your actions, including the Hajj or Reciting the Quraan etc., you will get reward of what you have done, and surely DEEDS of your loved ones or others will NOT save you. (Selected References: Al_Quraan_003.030, 003.185, 006.164, 014.051, 016.111, 018.047-049, 020.015-016, 031.033, 036.054, 039.069-070, 040.017, 044.041, 045.028, 060.003, 070.010-015, 075.13, 080.034-037, 082.005, 099.007-008)). Prophet Muhammad (Peace-Be-Upon-Him) NEVER celebrated his birthday in his life time.

Excess of anything is bad, instead help the needy and get great reward from Allah, (Ref. Al_Quraan_017.026-027). Be an excellent example (a Role Model) for your kids.