Planning for Financial Stability
The following information is intended to assist academic year (9 month) employees who would like to spread their pay over 12 months.
Direct deposit allows employees to distribute their pay into multiple financial institutions and accounts. With direct deposit, an employee can direct a portion of their pay into separate accounts to achieve any financial goals, including setting aside money for the summer months, or a vacation, a wedding, a college fund, children’s savings accounts, just to name a few.
How Much to Set Aside?
The summer pay worksheet (xls) can be used to determine the amount of money that a nine month employee needs to set aside each pay check to have an equal biweekly amount available during the summer. Enter the net pay amount from your pay check in the Net Pay Distribution box. The worksheet will then display the amount of money that should be saved from each pay check over the 20 pay periods in the academic year. The amount you wish to set aside for summer is dependent upon your needs and expenses, which you may find to be less than or greater than the calculated amount in the worksheet.
Setting up Direct Deposit
- Open a savings account at a financial institution of your choice or use a savings account you currently have. Have the routing number and account number ready to attach.
- Complete a Direct deposit form.
If you have additional questions with direct deposit ou may contact your department personnel specialist or Human Capital Services at 785-532-6277.
Other Tips and Resources
Some financial advisors recommend opening a savings account at a financial institution that you don’t currently use in order to make it more inconvenient for you to withdraw money during the academic year.
Direct deposit with payroll deduction is a powerful money management tool. Using payroll deduction to put a percentage of your paycheck into savings each payday is an easy and "painless" way to save. You can also choose to make a loan payment to your credit union or bank automatically. This way you can accomplish three things at the same time -- build your savings, fulfill a debt obligation, and make funds available immediately.