Saving · Module 7 of 9
The money that shows up all at once
Make the most of a bonus or refund: decide what it’s for before it arrives, and when paying off debt is the better move.
Key terms in The money that shows up all at once
- Supplemental wages
Supplemental wages are payments made to an employee outside regular pay for a normal pay period. Bonuses, commissions and overtime pay can all qualify when paid separately, and tips are also treated this way. The Internal Revenue Service gives employers special withholding methods for these payments, so tax taken out of a bonus can look different from tax taken out of ordinary pay.
Source: Internal Revenue Service, Publication 15 (2026), (Circular E), Employer’s Tax Guide
- Refund allocation (Form 8888)
Form 8888 is the Internal Revenue Service form that lets a U.S. taxpayer have a refund deposited directly into more than one account. The accounts can be at banks, credit unions, brokerage firms or mutual funds. The form divides a single refund into separate parts rather than sending one payment to one destination.
Source: Internal Revenue Service, About Form 8888, Allocation of Refund
- Lump sum
A lump sum is a single, one-time payment received all at once rather than in a series of smaller installments. Tax refunds, bonuses, inheritances and settlements are common sources. The Consumer Financial Protection Bureau notes that for many lower-wage workers a tax refund is the largest single sum they receive all year.
Source: Consumer Financial Protection Bureau, Build a brighter future by saving at tax time
Every term on Lever is in the money glossary.
About this module
The money that shows up all at once is part of Saving, one of 15 subjects in Lever. It’s a short run of 5 lessons, about 13 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
More in Saving
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1
The fund that catches you
Build a small emergency fund first, know what really counts as an emergency, and refill it after you use it.
5 lessons -
2
Money with a name on it
Give your savings a job, plan for more than one goal at a time, and work backward from a date to a monthly amount.
9 lessons -
3
So it doesn't depend on a good month
Keep saving even when your income goes up and down, with an honest average and a plan that runs on its own.
5 lessons -
4
Three ways to divide a month
Three popular ways to budget, including 50/30/20 and envelopes, and how to pick the one you’ll actually stick with.
6 lessons -
5
Running a tanda
How savings circles like tandas work, what your turn in line is worth, and what to check before you join one.
8 lessons -
6
Money sent home
The hidden costs of sending money abroad, and how to get more of it to the people who need it.
6 lessons -
8
When your own money buys less each month
Why money that just sits loses value when prices rise, and the one comparison your bank’s ads never show you.
5 lessons -
9
What the app does with your spare change
How round-up saving apps really work, who is holding your money, and the fee that can wipe out what you saved.
5 lessons
Try this module
It’s part of Saving. Lever will bring it to you when you’re ready, or you can go straight there.