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
Types of IRAs?
- Traditional
- Roth (at a young age, Roths typically return more money)
What is the Career Starter Loan?
Available at the end of your 3/C year, may range up to $36,000
What is Interest?
- Charge for the privilege of borrowing money
- Higher the interest, the more money you pay or make
Types of Interest
- Compound - charged on the amount borrowed or lent plus the interest it has accrued
- Simple - Does not compound; only charged one the amount borrowed or lent
Good Money Habits
Papa Bear Lives Pretty Suave
- Pay yourself first
- Budgeting
- Live below your means
- Pay with cash
- Save for retirement
Bad Money Habits
Louie Made No Payment
- Living paycheck to paycheck
- Max out your credit cards
- Not reviewing your Credit Reports
- Paying the minimum on Credit Cards
Three Credit Agencies
- Experian
- Equifax
- Transunion
Bad Credit range
<630
Fair Credit range
630-689
Good Credit range
690-719
Excellent Credit range
720-850
Types of Credit ranges
Bad
Fair
Good
Excellent
Benefits of the SCRA
Reduce or cap interest rates on any credit card or other loans you acquired before you entered the military to 6% per year
Who is the Midshipmen Financial Advisor?
LT Andrew Hughes
Bancroft C209
Who is the Midshipmen DISBO?
LT Daniel Montieth
Bancroft 4002
