What Their First Paycheck Will Look Like

Your Future Soldier has signed the contract, taken the oath, and is preparing for Basic Combat Training. Soon, they’ll be earning their first official paycheck—and for many, it’s the first steady income they’ve ever had. That paycheck will represent more than dollars. It’s a symbol of their hard work, discipline, and service.

As a supporter, it helps to understand how Army pay works, what the numbers really mean, and how to encourage smart money habits right from the start.

When They’ll Start Getting Paid

Your Future Soldier’s pay typically begins once they start Basic Training (not during the Delayed Entry Program). Pay is processed through the Defense Finance and Accounting Service (DFAS) and is direct deposited on the 1st and 15th of each month.

It may take 1–3 pay cycles for the first deposit to appear, especially if paperwork or processing is delayed. It’s normal for the first paycheck to be partial or delayed slightly—so patience is key early on. Don’t worry, if it is delayed, they will receive back pay.

Base Pay: What They’ll Actually Earn

Most new Soldiers start at the rank of Private (E-1) or Private (E-2) depending on qualifications. Here’s what that looks like:

• E-1 with less than 4 months of service (2025 rate): approx. $2,144/month
  
• E-2 or E-3 with advanced rank: ranges from $2,599–$2,763/month
  

During Basic, Soldiers receive:

• Free housing (barracks)
  
• Meals provided (in dining facilities)
  
• Full healthcare coverage

If your Soldier is married, they will recieve a housing allowance (BAH) based on their home of record zip code and rank.  Visit the BAH website for more.

Because many living expenses are covered, their net income can go further than it would in civilian life. To check the pay grades, please visit DFAS.

Deductions and Withholdings

The paycheck your Soldier receives will have federal taxes, Social Security, and Medicare deducted. They may also see deductions for:

• Servicemembers Group Life Insurance (SGLI)
  
• Mid-month advances if they receive an advance payment
  
• Thrift Savings Plan (TSP) contributions (Retirement)
  

It’s important to note that state taxes vary depending on their legal state of residence—not where they’re training. Their first paycheck may have a debt from an advance they recieve when they arrive to Basic Training. Males recive a $350 advance while Females recive a $756 advance. This is to be used for anything that they need to start Basic Training.

Why the First Paycheck Might Be Smaller Than Expected

If your Soldier is just entering service, their first few paychecks may not be for a full pay period. Also, any advances, allotments, or paperwork delays could result in a smaller or staggered payment at first.

Once their pay system is fully active, it stabilizes and becomes consistent. Encourage them not to spend that first deposit right away—it’s best to save or budget it carefully until things normalize.

Setting the Tone for Smart Money Habits

That first paycheck feels like a big milestone—and it is. It’s also an opportunity to start smart:

• Open a checking and savings account before shipping
  
• Review their LES (Leave and Earnings Statement) together when available
  
• Start building savings early, even just $25–$50 a month
  
• Avoid early debt traps like unnecessary credit cards or financing offers
  

You don’t have to be a financial expert to help—you just need to encourage steady, long-term thinking.

Last Call

That first paycheck is more than money—it’s proof that your Future Soldier is earning their place, their pride, and their independence. Help them understand what it means, how to use it wisely, and why good habits now will set them up for success far beyond Basic Training. Because financial readiness is part of being Army Strong—and they don’t have to figure it out alone.

I’ll be back next week with more tips and guidance. Until then, Hooah!

SGM Kris Broadus, U.S. Army (Retired)