Week 2: Financial Literacy Flashcards
Midshipmen pay
35% Base pay of an O-1 with less than 2 years of service
Pay rates per class
4/C: $125
3/C: $225
2/C: $300
1/C: $500
When are pay days?
Beginning of each month
When is Held Pay released?
- February
- July
- November
Held Pay per class
4/C: Not eligible for Held Pay
3/C: $1,500
2/C: $1,350
1/C: $1,000
Where can Held Pay be found?
- “Summary” column, on the line labeled “Cr Fwd”
Amount of the ACE Loan?
$8,500
When are Mids required to file their taxes?
15 Apr
Coverage of the SGLI?
$400,000
Amount for COMRATS
$12.30
What is a Checking Account?
‘Everyday use account’
What is a Savings Account?
- Modest interest rates
- Use as an emergency fund
What is a Money Market Account?
- Pays higher interest
- Used for short-term savings and emergency funds
What are Certificates of Deposit?
- Funds borrowed by the bank
- Primarily used for short-term financial goals up to 5 years
What are Stocks?
Common (For the Rich) - Entitles the owner to vote at shareholder’s meetings and to receive dividends
Preferred (Low risk; For the People) - Does not have voting rights but has a higher claim on assets
