Can Custody Include Allowances for Pocket Money?

In custody arrangements, parents may consider various financial provisions to ensure their child’s well-being. One area that can sometimes be addressed is the child’s allowance or pocket money. While it's not typical for custody agreements to include detailed provisions about pocket money, some parents may wish to establish guidelines on how financial support, such as allowances, is managed across both households. This can be important for teaching children financial responsibility and ensuring that both parents contribute equally to the child’s needs, including their personal spending money. Courts generally do not directly intervene in matters like pocket money unless they are linked to broader financial responsibilities or child support.

Can Custody Include Allowances for Pocket Money?

Allowance as Part of Custody Agreements

While pocket money isn’t typically required to be included in a custody agreement, some parents may wish to formalize this provision. This could be helpful if both parents want to ensure consistency in how much money the child receives and what it is used for. Some aspects that might be addressed include:

• Amount of Pocket Money: Parents may agree on a specific amount of pocket money that the child will receive during visits or in each household. This helps prevent confusion or disagreement over financial contributions.
• Purpose and Use of Pocket Money: The custody agreement may specify how the pocket money should be used. For example, it could be for discretionary spending (like buying toys, treats, or small personal items) or for contributing toward specific expenses (such as school-related needs or saving for long-term goals).

Establishing Financial Responsibility

One of the main purposes of providing a child with pocket money is to help them learn financial responsibility and budgeting skills. Including pocket money provisions in the custody plan can encourage the child to:

• Budgeting Skills: Parents may agree to teach the child how to manage their allowance, set savings goals, and make wise spending decisions.
• Equality Between Households: To avoid discrepancies or feelings of inequality, parents may wish to ensure that the child’s allowance is consistent across both households, reinforcing a sense of fairness.
• Family Values: For parents who value financial independence and teaching responsibility, agreeing on an allowance might be a way to instill these principles.

Parenting Plans and Allowances

A parenting plan typically includes key aspects of the child’s daily life, such as visitation schedules, healthcare decisions, and schooling. While it’s not mandatory, some parents choose to include specific provisions related to allowances in their parenting plans. This may include:

• Payment of Allowance: If one parent is responsible for paying the allowance, this may be noted in the parenting plan. Alternatively, the plan might specify that the allowance is shared equally between both parents, with each contributing a portion.
• Consistency in Amount: To avoid confusion, parents might agree on how often the child will receive the allowance, whether weekly or monthly, and ensure that both parents stick to this plan.
• Additional Contributions: Sometimes, parents might agree on additional financial contributions to specific needs, like sports, entertainment, or special activities, which could be separate from the child’s regular allowance.

Court’s Role in Financial Matters and Allowances

Generally, the court will not be involved in deciding the specifics of a child’s allowance. However, if the child’s allowance is related to child support or another financial obligation, the court may consider it as part of the overall financial arrangement.

• Child Support Considerations: If the custody agreement includes provisions about child support, the pocket money may be seen as part of a broader conversation about the child’s financial needs. For instance, if the non-custodial parent provides pocket money, this could affect the amount of child support they are required to pay.
• Ensuring Fairness: Courts are primarily concerned with the child’s well-being, and so they will ensure that any financial arrangements, including allowances, are in the best interest of the child. If there is a concern that one parent is not providing an adequate allowance or using pocket money as leverage in a dispute, a court may intervene.

Allowances and Shared Financial Responsibility

Including allowances in a custody agreement can also be an opportunity for parents to share responsibility for raising the child. The following elements may be considered when discussing pocket money:

• Equality in Contributions: In situations where both parents contribute to the child’s upbringing, it’s reasonable to discuss the amount of allowance given by each parent. For example, one parent might contribute a fixed amount each week, while the other might contribute a larger sum for special occasions or savings.
• Consistency Across Households: It’s often a good idea to ensure that the child’s pocket money is consistent across both households, as this promotes stability and reduces potential conflicts. If one household provides more or less, the child may feel unfairly treated or confused.

Teaching Financial Literacy

Allowances can be an excellent way to help children develop financial literacy, which is an important skill for adulthood. Parents can use the opportunity to:

• Teach Saving and Spending: Parents can work with the child to decide what portion of the allowance should be saved, spent, or donated. This teaches the child valuable lessons in budgeting, saving, and making wise spending decisions.
• Involve the Child in Financial Decisions: As children get older, they can be involved in decisions about how to spend their allowance. This empowers them to make their own choices while still learning important financial concepts.

Modifications and Adjustments to Allowances

As children grow, their financial needs and desires may change. Parents should remain flexible in adjusting the allowance amount or conditions as the child matures.

• Increased Allowance: As children get older, they may require more money for social activities, school supplies, or personal interests. Parents may agree to periodically increase the allowance to reflect the child’s changing needs.
• Performance-Based Allowance: Some parents may tie allowances to specific behaviors, such as completing chores, good academic performance, or contributing to household responsibilities. This can teach children the value of work and responsibility, but it should not be used as a tool for manipulation.

Conflict Prevention Regarding Pocket Money

Including clear, agreed-upon provisions for pocket money can help avoid conflicts between parents. For example:

• Avoiding Disagreements: By discussing and including pocket money in the custody agreement, parents can avoid misunderstandings about who is responsible for providing it, how much the child should receive, and whether the allowance is part of child support.
• Clear Guidelines for Spending: If there are concerns about how the child is using the pocket money, parents may include guidelines about acceptable spending (e.g., no candy, no luxury items) and discuss how to handle situations where the child wants to buy something unnecessary.

Example:

Situation

A divorced couple with a 12-year-old son wants to ensure that both parents contribute to his pocket money. The mother gives him $10 a week, while the father only gives him $5, leading to occasional disagreements.

Steps the parents can take:

• Agree on an Equal Allowance: After discussing the issue, both parents agree to provide an equal weekly allowance of $10 to the child, ensuring fairness between households.
• Clarify Financial Responsibility: The parents decide that the child’s allowance will be given by the parent with whom the child is staying for the week, but both parents will contribute equally over time. This avoids any confusion or favoritism.
• Add Financial Education: Both parents agree to help the child learn to budget by discussing how to save and spend their pocket money responsibly.
• Review and Adjust Over Time: As the child enters their teenage years, the parents agree to periodically review the allowance to ensure it’s appropriate for the child’s growing needs and interests.

In this case, the parents created a fair and structured approach to the child’s allowance that helps foster financial responsibility while reducing potential conflicts.