Meet The Romanos: Learn how to budget your children’s expenses properly
Heather and Tony have recently divorced. During their separation negotiations, they incorporated a plan into their Separation / Divorce Agreement to help them determine how much each parent would be responsible for contributing to special and extraordinary expenses for their children. These expenses could include:
- Sporting or Club fees (hockey, dance, etc.)
- Uninsured Medical Expenses, Counseling, Prescription Drugs
- School related fees (tuition, school supplies or school trips
- Religious Costs (ceremonies, trips or supplies)
- Clothing (special occasions; prom dress, new suit)
- Hobbies or Lessons (piano, swimming, etc.)
In their Agreement, they decided their payments would be based on the yearly income of each parent and would be shared accordingly based on that percentage. Each year the percentage could change based on their previous years’ income and they both agreed their children should contribute to some of their own costs.
Agreements take pressure away from children. When the time comes to ask either parent to pay for an unexpected or expected expense, children are less anxious.
Heather and Tony’s children have the right to reasonable financial support during their childhood and throughout their college / university years without the fear of guilt from either parent.
The successful completion of Heather and Tony’s Agreement allows their children to not be caught in the middle of their parents’ divorce.
With 4-5 in 10 marriages in North America ending in divorce, determining a financial plan is an issue that affects a large number of North American families. It is important when going through the divorce process that parents work together for the emotional wellbeing of their children.
Working together helps reduce anxiety, improves children’s attitudes, enhances school performance and nurtures friendships; allowing parents to move forward with their own lives.
Are you struggling to properly budget for your children’s expenses? Now’s a great time to budget for all their needs.