READY, SET, DEPLOY

That commitment has only grown stronger. Because we understand something vital: financial readiness is mission readiness. Whether you’re heading off to basic training, preparing for deployment, or navigating life after active duty, we’re here to help you build a strong financial future, one that lasts long after your service.

To guide you on that path, we’ve teamed up with Carter Herman, Senior Financial Analyst at PenAir and a member of the Florida Army National Guard. Carter regularly shares real-world financial advice with college students and fellow service members, offering practical insights for anyone making their first big money moves. His insights are grounded in real conversations with young adults navigating their first big financial decisions.

Your military paycheck is more than just base pay. Understanding your full compensation is key to making the most of every dollar:

• BAH (Basic Allowance for Housing)
  A monthly allowance to help cover housing costs when government housing isn’t available. It’s based on your duty location, pay grade, and whether you have dependents. If your actual housing costs are lower than your BAH, you can save or invest the difference.
• BAS (Basic Allowance for Subsistence)
  A flat-rate monthly allowance meant to offset the cost of meals for service members. It’s intended for the service member only—not their family—and may be adjusted if you eat at a military dining facility.

These benefits can stretch your budget further—if you know how to use them.

Start with a simple budget. Track your fixed expenses (like phone bills), variable costs (like food), and savings goals.

Don’t just keep it all in your head—write it down. A simple spreadsheet can help you visualize the money coming in and going out.

“If you prefer automation, many banks and credit unions—including PenAir—offer tools that generate budgets based on your account activity,” explained Carter. “The key is to make a habit of using it regularly and sticking to the budget you’ve created.”

Set it and forget it. Automatic transfers to a savings account or the Thrift Savings Plan (TSP) can help you build a cushion—without lifting a finger. Even small contributions add up over time.

You’ve earned them. Make the most of:

• GI Bill for education
• TSP for retirement
• SCRA protections (like interest rate caps and lease flexibility)

“The TSP is a fantastic way to secure your financial future. Under the Blended Retirement System, you can get up to a 5% government match—free money,” shared Carter. “If you’re deployed to a combat zone, you can make tax-free contributions. Put that into a Roth account, and your withdrawals will be tax-free too. That’s a win-win.”

And don’t forget the Servicemembers Civil Relief Act (SCRA). If you get PCS or deployment orders, you can end your housing lease without penalty. Plus, loans taken out before enlistment may qualify for a 6% interest cap.

It’s easy to get caught up in the excitement of your first military paycheck or enlistment bonus—but smart money habits start early.

“One of the most common financial pitfalls new enlistees face is the temptation to overspend their first paycheck or enlistment bonus. Imagine getting a $20,000 bonus right at the start—it’s easy to get excited and spend it all quickly. But saving or investing it wisely can make a huge difference,” Carter said.

Don’t wait until the last minute—take time now to get your finances in order. A little planning now can save you a lot of stress later.

“Managing your finances ahead of basic training or deployment can help ensure peace of mind while you’re away,” said Carter. “Cancel or automate any bills and subscriptions so you can focus on your mission.”

At PenAir, we don’t just talk about financial readiness, we live it. We offer free financial counseling to our members to help you build a personalized plan, whether you’re just starting out or preparing for deployment. Our team of certified financial coaches are a great resource so make an appointment today!