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My First Paycheck from my Holiday Job
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December 28th, 2009Great Recession, Income
Today I got my first paycheck from my holiday job. I was starting to wonder when that first paycheck would show up and I kept checking my bank account to see if the direct deposit had come through. I finally went and asked my manager and it turns out the direct deposit paycheck hadn’t gone through.I was so excited to see my paycheck that I immediately opened it up to see how much I had made working. It was a whopping $161.29. What! No way! I know I am working for peanuts but that’s even smaller than peanuts. So, I started scanning my paycheck to see why the heck my paycheck is the size of a mustard seed and that’s when I noticed my big fat 401(k) contribution. So, here’s how my first paycheck breaks down.
Total Earned Paycheck: $515.12
Now, subtract the following:
401(K) Contribution:-$257.56
Hours: 15.90 Retail at $8 per hour = $127.20 39.30
Jewelry at $7.25 per hour & commission = $387.92 ($284.93 hourly total + commission 102.99)
Taxes: $76.27
Total After Taxes and 401(k) Contribution = $161.29
So, What’s Up With the 401(K)?
I had the option to opt in to Big Department store’s 401(k) plan and I elected to contribute 50% of my paycheck. There’s no special reason to do this and keeping up with it, closing it and transferring will probably take more effort for such paltry sum. But, I opened it because this was the first job where I had the option to contribute towards a 401(k) and I was of age to do so. This was my first chance to open one and I just couldn’t let the opportunity pass.
Tags: first paycheck, holiday job, paycheck, seasonal job, Temporary job
5 responses to “My First Paycheck from my Holiday Job” 
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Very cool you broke it down! That’s great you contributed 50% Jane!
Love the initiative you’ve taken to work a holiday job. You’ve inspired me to go think about teaching tennis again, even in the “freezing” 50 degree weather we have here in San Fran!
Hmmm, should I use my blog as a platform to advertise tennis lessons in SF? Then I’d have to wear a mask when teaching though.
HNY!
Best,
Sam
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Does the job offer any matching or benefit to using their 401k? If not, you’re probably better off creating your own IRA through Vanguard or another similar financial institution.
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@Financial Samurai
I was in San Fran my first summer after law school and the fog make me want to stay inside and do absolutely nothing. Hopefully SF residents will be more game!@MeinMillions
There is no match for me right now as a holiday worker. I do have a Roth IRA and I contribute the max so I just opened one because it was my first opportunity to open a 401(k). Can’t let retirement opportunities pass. -
Jane OMG!!!!!!!!! 50% to 401K????? That’s crazy… You would be better off taking that money and putting it into a savings account if hey don’t match. This being a holiday job.. 401k really shouldn’t matter yet. Once you finish law school and you start your 401k then, the $257 you put into this 401k plan won’t mean a thing…
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@ D.JamesRice
I know that since its a small amount and there is no employer match it doesn’t really matter but this is the first option that I had to open a 401(k) and I just couldn’t turn it down!
Financial Samurai January 1st, 2010 at 10:08