Welcoming everyone back to school this month. I’m hoping that we all $tudy $trong!
This month I want to introduce you to “A Stipend.”
A stipend is a form of payment given instead of wages paid for services performed. A stipend is usually paid on a monthly basis, although it can be paid in any agreed increments, such as weekly or biweekly. Stipends are offered for a variety of reasons. Stipends are designed to help you pay for the following: academic research, childcare, health insurance, job training, travel, food or living expenses. The list is continuous.
Here is an example
There is a job posting from a local organization. This company is looking for someone to assist with filing, and light office work for three months. They indicate they will pay a $500 per month stipend for travel expenses and job training.
What this means is, you will get paid $500 per month from the organization. You will not get paid every week or every other week like the regular employees that work there. You will receive training for filing and light office work they need you to do. In exchange for your services, the $500 per month you receive, is for your training and to help with your travel, back and forth to work.
Be aware that the company may or may not deduct taxes from the $500, however, the money is considered taxable by the IRS, so keep this in mind for the tax filing season!
My example of $500 is not a lot of money. It is only an example. Please understand that being paid a stipend for training, work or learning experience can be very beneficial, rewarding, and lucrative! If you have an opportunity to learn and grow with an organization and they are offering a stipend, consider all your options carefully before you make the final decision. As always, keep your mind on your money! Until next month…
L.A.L.A. Nonprofit Org.