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At least I know

March 6th, 2013 at 02:51 am

I had a nice, honest heart-to-heart with my financial picture for the next few months yesterday. In the teaching world, I am paid for ten months of work. My employer takes out a specific percentage (22.6% to be exact) every pay period and holds this money to pay me when school is not in session. This is known as deferred pay. Not all districts do this, but most do. My employer decided in the fall to discontinue this practice. We will be paid a large lump sum at the end of June rather than be paid out all summer.

I understood this, but reality sunk in recently when our pay schedule for the 2013-2014 school year came out. We will not be paid until September 20th! As a single mom, I will need additional funds to make sure my DS has what he needs to start school including his glasses. It is with that I decided if I do not gain an administrative position, I will have to teach summer school.

So yesterday I sat down and was completely honest with myself and my budget. I calculated the cost of living for three months, or rather the cash amount I will need in order to make do. I will have just barely enough to make do, but not enough to cover going back to school expenses. But WOW! To be able to see the exact number I will need, be very clear about my big picture, it is so freeing and wonderful! Now, when I see that impulse buy, I will have that figure in my head reminding me that I have to keep our family afloat. Perhaps it will encourage me to squirrel away the extra pennies, dollars, windfalls.

5 Responses to “At least I know”

  1. creditcardfree Says:

    It is still the same amount of money, so it is good that you aren't thinking of spending your big windfall. Your paychecks will be larger in September now that you are not on the deferred pay plan.

  2. JulieA Says:

    I grew up in a Union Town and many of the people always had what they called Strike Savings where they were saving a percent of every paycheck to cover their living expenses every 3 years when the Union would go on strike and they'd be without paychecks for a time. It is another flavor of the emergency fund, even if it was a planned emergency. I think anybody who can reliably anticipate a chunk of time where income halts needs to do something like that. Good for you.

  3. Joan.of.the.Arch Says:

    So you are already on the ten month payment system? Because if you won't be getting paid until September, it sounds like they will finish paying you for the 2011-2012 school year at the end of this semester. Then if that's the case, you should not expect your paychecks to go up in September, as it sounds like you started on the ten month system already. Am I understanding that?

  4. aevans1206 Says:

    They began the year taking out deferred pay and made the decision during our contract negotiations in September. They have continued taking out the deferred pay this year which is why they will give us a lump sum in June. After that point, it will be up to me to save for the summer. The formula they use is 22.6%. I may just plain round it up to 25 or 26%. While my paycheck in the fall will be larger, I will still need to save for the summers.

  5. Jerry Says:

    Why would they discontinue something like this that makes so much sense for teachers and other seasonal employees? It should be automated, so it would not lead to much extra cost at all to continue it, at least as I am analyzing it. My mom was a teacher, and she taught summer school most years just to help the family budget, but she still had the insurance of summer paydays. I do not understand the school district`s thinking on this, honestly.
    Jerry

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