Mid Finances

Discussion in 'Naval Academy - USNA' started by TS20, Dec 13, 2015.

  1. TS20

    TS20 Member

    Jul 7, 2014
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    What kind of financial guidance do midshipmen receive at the academy? Do they open up new bank accounts where they can direct deposit pay/withdrawal from checking or savings? (With military banks) Can they transfer money from outside accounts into new ones? Do Mids typically become more financially independent?
  2. USNA 19 DAD

    USNA 19 DAD Member

    Mar 10, 2015
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    Can't answer the first question. Part of the packet one receives after accepting the appointment is banking info. Naval Federal Credit Union sends an account sign up card as well. The Navy will direct deposit to any bank you choose, and they want you to have that info on hand on I-Day. My DS opened a new account at NFCU because they have access in Bancroft Hall. Yes you can transfer into new accounts. I wired money from his account at home to his new one when classes started. As far as you last question goes...... Not yet for my Plebe. He loves to spend money like most 18 year-olds. That said, he is getting paid ($100/ mo) and other that about $50-75 a month we stick on his Yard Card, he does not ask for much.
  3. USMC_Ordie

    USMC_Ordie Member

    Dec 5, 2013
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    Our DS goes to Air Force Academy, and other than a few hundred that we gave him when we dropped him off, we haven't had to spend anything really other than bringing him home on breaks.

    They will make sure he has everything he absolutely needs.
  4. VelveteenR

    VelveteenR Just gathering dust in the nursery...

    Jul 24, 2014
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    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!
    landlock and Navy92 like this.
  5. NavyHoops

    NavyHoops Moderator

    Jul 13, 2011
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    Everyone has it covered here. True, the SAs are not going to give you investing 101. Get a USAA account at some point as it is great for insurance and other things. They know the military life and customer service is great. They also will help with investments. Start a Roth and put some money in it.

    I was one of those who got very little money from home has a Mid. $50 as a Plebe doesn't go very far. My parents would send $20 here and there, but not often. The most I made as a Mid was $125 a month. The take home is better now. I did take the loan, bought a used sensible car, paid for my USMC uniforms, opened a Roth and used it to pay for car insurance 1/C year. The loan is much larger now. Before taking the loan sit down with a financial adviser and talk about your plans with the money.

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