Joining the military after high school
Joining the military after high school is no small decision. See how our joining the military experience will help guide you on your new career.
Congratulations on your recent graduation! After all you've achieved over the past four years, you're starting a journey that less than 1% of Americans take.
Joining the military after high school is no small decision, so let's say this in advance: Thank you for your willingness to serve. You'll sacrifice time, freedom and sleep to keep the other 99% of us safe.
USAA understands your sacrifice. We were founded in 1922 by the military and for the military. That's when 25 Army officers came together with the goal of insuring one another's vehicles because no other insurance company would. These officers and their military lifestyle were considered too risky. So they founded USAA.
From those beginnings, we've followed the same military values our founders prized: service, loyalty, honesty and integrity.
More than 100 years later, we're still committed to serving military members and their families. The core of our mission is to “empower our members to achieve financial security.” That goes for enlisted, officers and veterans from any branch of service.
The military lifestyle is unlike any other. We understand how to navigate service members' unique challenges to help them gain and retain financial security.
Financial freedom starts now.
Financial security in the military starts before your first day of basic training. That's why we created the Joining the Military experience. You can use this guide to help you focus on your new career and better understand the milestones you'll face during the recruiting process, basic military training and arriving at your first duty station.
"The Joining the Military advice page helps you prepare for military service — whether that's through immediate enlistment or by pursuing a college degree to become an officer," says Rod Roederer, USAA Product Management Director for Military Life Experience and retired Army lieutenant colonel. "You will learn about the steps you should follow while you are joining, how much pay is possible and how to use that pay to enable a solid financial future."
There are a few steps you can take when you join the military to help set you up for financial success.
- Set up a direct deposit.
- Create a budget.
- Protect your property with appropriate insurance coverage.
- Start building an emergency fund.
- Begin saving for retirement.
- When purchasing a vehicle, consider the total cost of ownership.
- Beware of predatory lenders.
We'll walk you through the process in this video.
Video Transcript: First financial steps to take when joining the military
- Video duration: 3 minutes 7 seconds
Intro: Elapsed time 0 minutes 0 seconds [00:00]
When you enter the military, you will need to set a direct deposit. That is where your monthly paycheck is automatically deposited into your bank account. Without a plan for how you'll spend and save your money, it's easy to go into debt or fall short of your long-term goals. A budget helps you organize your spending.
Quick tip. If you're an officer, you'll need to budget for uniform purchases. If you're an enlisted member, you'll have a clothing allowance. But use it wisely so that you can use your paycheck to meet other financial goals.
If an accident occurs, do you have enough cash on hand to replace all your possessions, including your military uniforms? Most of us don't. If you fall into that category, consider a cost-effective insurance like renter's or a valuable personal property policy to reduce the financial setbacks if a loss occurs. A renter's policy would cover all of your valuables and military gear in the barracks or a rental property. A valuable property policy would provide extra protection for special items such as guns or smartwatches.
Your new budget should include money for emergencies. We never know when an emergency will happen, so it's nice to have money set aside to help during troubled times. Start with an initial goal of $1,000 and then work toward a fully funded emergency fund of three to six months of living expenses. Even setting aside $25 out of each paycheck will get you there over time.
Another key part of your budget will be funding your retirement savings. Set a goal of saving at least 10% of your income for retirement. If you have debt or other competing financial obligations, you may not be able to do the entire amount. But starting small is better than not starting at all.
With each raise or promotion, you can increase the amount you save. As a military member, you have the Thrift Savings Plan available to you. If you are under the Blended Retirement System, remember that if you contribute 5% of your paycheck into the Thrift Savings Plan, once eligible, the DOD will match your 5% with 5%, which is free money.
While that fancy new sports car or decked out truck looks appealing at the dealership, it might not fit within your budget. Your goal is to keep the total cost of ownership that includes your payment, insurance, gas, maintenance, and repairs limited to 10% to 15% of your monthly income. A reliable used vehicle might be a better choice than a new car.
Predatory Lenders are ready to step in when you need cash fast, but the terms are often unfavorable to you. The interest rate in particular will be much higher than it would be through other sources. If you need cash fast and don't have an emergency fund, military relief associations like the Air Force Aid Society or the Army Emergency Relief are there to help.
Also, once the situation is over, prioritize your emergency fund so you are better prepared the next time an emergency arises. For more information and advice around steps to take as you are joining the military, please visit usaa.com/militaryjoining.
Description of visual information: [Copyright (C) 2023 USAA. This material is for informational purposes. Consider your own financial circumstances carefully before making a decision and consult with your tax, legal or estate planning professional.
USAA means United Services Automobile Association and its affiliates.
No Department of Defense or government agency endorsement. Information subject to change.
NC] End description of visual information.
End: Elapsed time 3 minutes 7 seconds [03:07]
Moving while on active duty
Frequent moves are one aspect of the military lifestyle and is one aspect that you need to learn about as you join the military. Your first military move will come up quickly.
I moved every two to three years. It's just part of being in the military. When it comes to a military move or PCS (permanent change of station), there are many things you can do right and many things you can do wrong. There are also many ways to save — and lose — money.
To help members come out on top after a PCS, we've built another experience on the art of the military move. Each military move brings enough stress to your life. There's no reason to bring more stress by not being prepared.
The following videos provide high-level information about how to make your military career a success:
Understanding your enlistment options
Finally, we realize that joining the military is a big step. It's normal to feel nervous and excited at the same time. Plus, the military lifestyle isn't for everyone.
Your days will be regimented. You must be willing to put yourself in harm's way at a moment's notice. And you'll actually forgo the ability to control certain aspects of your life, such as where you'll live or what job you might be doing. However, the military lifestyle is also filled with purpose, solid career opportunities and world-class training. It also provides the ability to gain a solid financial foundation.
Our podcast series, “Military Moves,” discusses what it's like to join the military from both enlisted and officer viewpoints. These podcasts also help you learn more about active duty, Guard and Reserves.
- Joining the military: Officer
- Joining the military: Enlisted
- Active duty versus Guard versus Reserve
Congratulations again on your decision to join the military. Here at USAA, we stand with you. We want to help you understand the ins and outs of military life and navigate them successfully.
There's no need to learn these lessons on your own when so many before you have already learned them. With a little bit of effort, you can use each stage in your military life to become more financially secure.