We've given our son financial guidance since he started getting money in birthday cards. When he turned 12 and that birthday money had accumulated a bit, we set him up with an appointment with our broker to open his own account and start investing, but mostly to begin a lifelong habit of saving and to have an independent relationship with a professional to guide him. He is comfortable with money, and he saves more than he spends.
I know this is not typical, but we've always thought it important for him to understand how money works, how to set financial goals and achieve them, and how to make money work for him and not the other way around. He is just a plebe at Army now but, from what we can see, the academy only talks about the mechanics (how to open an account, monitor it, deposit/withdraw, etc.); they give no true guidance on how to think about and use money. I believe they are setting cadets up for disaster when that cow loan arrives as most cadets will blow it on a car thinking that that are doing a good thing by establishing credit. If this is what your academy does, please find another source of financial guidance. First thing, research the benefit of opening a Roth IRA. Even if you can only contribute a few dollars at first, those dollars will add up, especially as you achieve more savings discipline and begin to earn more money. Eventually, you will want to retire, and your Roth funds can be withdrawn without any tax penalty. If you do nothing else, start with a Roth, but I would encourage you to find a financial advisor who can begin to help you plan your financial independence now. Also, if you do not understand the miracle of compound interest, look that one up, too.
There is nothing like starting early. Just by posting this, you are thinking in the right direction. Keep going and good luck!
