What does the phrase “Out of Pocket” mean?

Greetings to you, Lyn Tamimi.

Paying “out of pocket” is when we have to use our own money to pay for something instead of having it paid by another party, for example by our employer or the insurance company, in your case your parents or in-laws. 

It can also be used in our everyday lives when talking about expenses we have to pay ourselves instead of our parents or partners. We can say, “Since I am a working adult now, I can shoulder the household utilities and groceries out of pocket.”