Stipend

AAA

DEFINITION of 'Stipend'

A predetermined amount of money that is provided periodically to help offset expenses. Stipends are often provided to those who are ineligible to receive a regular salary in exchange for the duties they perform, such as interns. A stipend is generally lower than a salary would be, but the recipient is at the same time able to gain experience and knowledge in a specific field.

INVESTOPEDIA EXPLAINS 'Stipend'

A stipend allows an individual to pursue work that is normally unpaid by helping defray living expenses. Interns, apprentices, fellows and clergy are common recipients of stipends. Rather than being paid for their services, they are provided with stipends to provide financial support while engaged in the service or task. Often, a stipend is accompanied by other benefits, such as higher education and room and board.

RELATED TERMS
  1. Free Application For Federal Student ...

    The form that must be completed in order to qualify for any type ...
  2. Education Loan

    Money borrowed to finance education or school related expenses. ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently ...
  4. 529 Plan

    A plan that allows for the prepayment of qualified higher education ...
  5. Qualified Higher Education Expense

    Expenses such as tuition and tuition related expenses that an ...
  6. Whartonite

    A graduate of the Wharton School of Business at the University ...
RELATED FAQS
  1. How is marginal propensity to save calculated?

    Marginal propensity to save is used in Keynesian macroeconomics to quantify the relationship between changes in income and ... Read Full Answer >>
  2. How can minimum wages contribute to a market failure?

    The minimum wage acts like a price floor on labor, reducing the supply of jobs available to a level below the market-clearing ... Read Full Answer >>
  3. How does the always be closing (ABC) strategy benefit a salesperson's sales funnel?

    It is good practice in sales to always be closing, because it's common for a salesperson's sales funnel to be leaky. When ... Read Full Answer >>
  4. How does accrued interest work on student loans?

    Using private and federal student loans to finance a college education is a common funding strategy, but students are often ... Read Full Answer >>
  5. How does Jeff Weiner make money from LinkedIn?

    LinkedIn CEO Jeff Weiner creates revenue for his company from user subscription fees, advertising and marketing operations, ... Read Full Answer >>
  6. What advice has Tim Cook given to would-be business leaders?

    Billionaire tech tycoon Tim Cook appeared at an event to discuss leadership with the would-be business leaders of Duke University's ... Read Full Answer >>
Related Articles
  1. Personal Finance

    More Bonuses And Fewer Raises Affect Workers

    Companies are increasingly replacing salary increases with bonuses, much to the detriment of employees.
  2. Entrepreneurship

    These Broker-Dealers Offer the Highest Payouts

    For financial advisors shopping for a broker-dealer, it’s wise to examine their payouts and services.
  3. Personal Finance

    Profitable Careers: Biotech Vs. Computer Science

    You may want to rethink that biotechnology career and refocus your innate technical abilities on a career in computer science.
  4. Credit & Loans

    Technology Can Help With Student Loans

    Paying student loans can be a difficult time for young professionals and even in older age. But many new marketplace lending services such as SoFI, CommonBond and Earnest have leveraged the surge ...
  5. Professionals

    Advice To New Graduates: 3 Suggestions & One Rule

    Here are three suggestions for new graduates about to enter the work force, designed to ease your passage into the work world.
  6. Savings

    Grandparent’s Guide To A 529 College Savings Plan

    As a grandparent, you probably take pleasure in showering your grandkids with extravagances, but saving for their college education is a long-lasting gift.
  7. Investing

    Financial Gifts For Grads: Kindergarten To College

    If you really want to help your grad preparing for the future, consider a present that supports their long-term goals—an early start to financial planning.
  8. Personal Finance

    Is University Prestige Really That Important?

    Getting into a top school doesn't hurt, but it's not the real driver of who goes on to do well in life, as some provocative research demonstrates.
  9. Personal Finance

    The Most Competitive Industries For New Graduates

    Graduating from college is an exciting yet uncertain time for many students, as the overall job market is becoming more complex as time goes on.
  10. Personal Finance

    Protect Your Teen When They Work Over The Summer

    If your child is working a summer job, here are some rules you should know about what he or she is allowed to do.

You May Also Like

Hot Definitions
  1. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  2. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  3. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  4. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  5. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
  6. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!