What is a stipend?
A stipend can be a small amount -- less than minimum wage -- paid to a nonemployee for work that advances that person’s education. Typically, stipends are awarded to graduate students, research assistants, interns, or people being trained for a job. A stipend isn’t meant to be a living wage but is paid to defray expenses such as food, housing, and transportation.
Although the most common type of stipend is a small sum for someone who isn’t on a payroll, some salaried and hourly workers receive stipends for other reasons. Companies that want to recruit and retain good employees, for example, often will offer stipends for fitness centers, health insurance, wellness programs, home office furnishings, public transportation, parking, financial planning, office supplies, continuing education, or personal cell phone use (or, if you’re lucky, all of the above).