Legal Definitions - pocket money

Pocket Money

In a legal or financial context, "pocket money" refers to a small sum of money provided to an individual for their personal, discretionary expenses. This amount is typically separate from their primary income, wages, or allowances intended for essential needs like housing, food, or education. It is meant for incidental wants or minor personal spending rather than significant necessities.

• Example 1: Trust for a Minor Beneficiary
  A grandparent's will establishes a trust fund for their grandchild. The will specifies that the trustee should disburse $75 per month to the grandchild as "pocket money" for personal treats and entertainment, in addition to the larger sums allocated from the trust for their school tuition, medical care, and living expenses. This $75 is specifically for discretionary spending, distinct from the funds covering essential needs.

• Example 2: Employee Business Travel Allowance
  A company sends an employee on a two-week business trip abroad. Beyond covering the costs of flights, hotels, and a daily per diem for meals, the company provides an additional $15 per day as "pocket money." This extra allowance is intended for small personal purchases like a local souvenir, a newspaper, or an extra coffee, which are not covered by the standard business expense policy but contribute to the employee's comfort during the trip.

• Example 3: Child Support Arrangement
  In a divorce decree, a court orders one parent to pay child support. The order specifies a primary amount for the child's general welfare, covering housing, food, clothing, and school supplies. Additionally, the order mandates that a smaller, specific sum of $25 per week be given directly to the child as "pocket money" for their personal spending, such as toys, snacks, or movie tickets, separate from the funds for their basic necessities.