Erica Drame - Society for Financial Education and Professional

Report
Financial Education
for Members of the Armed Services
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Financial Readiness Program
Topics of Discussion
•
•
•
•
Budget
Credit and Security Clearance Issues
Low Cost Loans
Thrift Savings Plan
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Financial Readiness Program
• Over 2.6 Million Service members have deployed
- Operation Enduring Freedom
- Operation Iraqi Freedom
- Operation New Dawn
• Forty percent of troops have deployed more than once
• Six areas of increased risks for Service members:
- Mental heath
- Social and role functioning
- Relationship functioning and family life
- Spirituality
- Physical health
- Financial well-being
Anticipating the Landscape in the Years Ahead: Military Members Transition to a Post-War Mission, July, 2014
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Financial Readiness Program
Financial Readiness = Mission Readiness
It is DoD policy that Service members and their families have primary
responsibility for their well-being. Family readiness services enhance
members’ and families’ abilities to fulfill that responsibility.
Ready Service Members and Families are:
• Knowledgeable about the potential challenges they may face
• Equipped with the skills to competently function in the face of such
challenges
• Aware of supportive resources available to them
• Make use of the skills and supports in managing such challenges
DODI 1342.22, July 3, 2012
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Financial Readiness Program
The Pillars of Personal Financial Readiness
1.
2.
3.
4.
5.
6.
7.
8.
Establishing good credit
Maintaining financial stability
Committing to routine Savings
Taking part in the Thrift Savings Plan and
Savings Deposit Program
Enrolling in Servicemembers Group Life Insurance (SGLI)
Taking only low-interest loans
Using low-cost Morale, Welfare and Recreation programs
Preserving and protecting security clearances
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Financial Readiness Program
Financial conditions of Active duty Service members
67% - Described their financial condition as comfortable
24% - Reported that they “occasionally have some difficulty
making ends meet
10% - Responded that they were not comfortable with their
financial condition.
2013 Quick Compass of Financial Issues Survey of Active Duty members from all four Service branches (Army, Navy, Marine Corps and Air Force)
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Financial Readiness Program
Date:
Living Expenses
Name:
Rank: Proud Soldier!
SSN: 000-00-1234
Entitlements
Debt Information
Rent/Mortgage
$
-
Property Taxes, Assoc Dues, etc
$
-
Electric/Gas/Water/Sewage/Trash Removal
$
Telephone (Home)
Creditor
Mo Pmt
Tricare Dental
Acct Bal
$
-
$
-
-
$
-
$
-
$
-
$
-
$
-
Telephone (Cellular)
$
-
$
-
$
-
Cable Plan (Phone, Internet, etc)
$
-
$
-
$
-
Internet
$
-
$
-
$
-
Cable
$
-
$
-
$
-
Groceries (Food, Cleaning, Hygiene, etc)
$
-
$
-
$
-
School Lunches (Or Other Lunches)
$
-
$
-
$
-
Gasoline
$
-
$
-
$
-
Base Pay
$
-
Auto Maintenance/Repairs
$
-
$
-
$
-
BAS / RATS
$
-
Public Transportation
$
-
$
-
$
-
BAH
$
-
Child Care
$
-
$
-
$
-
Special Pay
$
-
Nursery, Kindergarten or Private School
$
-
$
-
$
-
Other
$
-
Allowances
$
-
$
-
$
-
Other
$
-
Recreation, Entertainment
$
-
$
-
Meals Out
$
-
Savings
$
-
Total Entitlements
Totals
Federal Taxes
$
-
Games, Hobbies, Sports, etc
$
-
FICA - Social Security
$
-
Clothing
$
-
FICA - Medicare
$
-
Dry Cleaning, Laundromat, etc
$
-
SGLI
$
-
Barber/Beautician
$
-
State Taxes
$
-
Postage/Stationary
$
-
AFRH
$
-
Auto Insurance
$
-
Repay Advance
$
-
Renter's Insurance/Renters
$
-
TSP
$
-
Life Insurance (Not SGLI, etc)
$
-
SUMMARY
$
-
Pet Expense
$
-
Net Income
$0.00
$
-
Medical Expenses (Co-pay, Prescriptions)
$
-
-Living Expences
$0.00
Charity, Church, etc
$
-
-Debts
$0.00
Leaves
$0.00
Total Collections
Income
SM Net Monthly Income
$
-
Investments
$
-
Self Allotments
$
-
Child Support/Alimony
$
-
Other:
$
-
Other: Walmart
$
-
$
-
Other:
$
-
$
-
$
-
Other:
Total Net Mo. Income
Total Living Expenses
Current Debt to Income Ratio
#DIV/0!
ERICA F. DRAME
GS-12
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Financial Readiness Program
Financial Readiness Program
Understanding Good Credit
Many Service members continue to struggle with the consequences of high-cost
debt and that lenders have developed numerous products designed to evade the
consumer protections currently in place for payday loans and auto title loans.
DoD Congressional Report, Enhancement of Protections on Consumer Credit for Members of the Armed Forces and Their Dependents, April, 2014
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Financial Readiness Program
Why Low Interest Loans are Important
Defense Manpower Data Center QuickCompass
Survey shows that 11% of enlisted Service members
reported using:
Payday loans
Vehicle Title loans
Bank deposit advances
Pawn Shops and/or
Installment loans with interest rates over 36% APR
DoD Congressional Report, Enhancement of Protections on Consumer Credit for Members of the Armed Forces and Their Dependents, April, 2014
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Financial Readiness Program
Army Emergency Relief
Army Emergency Relief (AER) is a private non-profit organization that
provides emergency financial assistance to military personnel (active and
retired) and their families in times of distress. AER exists primarily for
“Helping the Army take care of its own”.
AER is open to Active Duty and Retired military and their ID card family
members; and Reservists and National Guard (while on active duty, Title 10
for more than 30 days) and their ID card family members.
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Financial Readiness Program
Army Emergency Relief
AER has introduced a few new categories of assistance and programs:
- Financial Fitness Program
- Dental
- Travel funds for relocation
- Child car seats
- Repair of HVAC
- Cranial helmets
- Purchase/repair of stoves and refrigerators
- Widows’ lifetime membership with Army and Air Force Mutual Aid
Association (AAFMAA)
- Scholarship for children of Soldiers who die on active duty.
- Commander’s Referral Program
- Educational Scholarships (Dependent and Spouse)
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Financial Readiness Program
Thrift Savings Plan (TSP)
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Financial Readiness Program
Basic Investing
• Benefits of TSP
• Rule of 72
• Risk Tolerance
• Types of Market Risks
• How much do you need for Retirement?
•
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Financial Readiness Program
Resources
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Financial Readiness Program
Army Community Service
9800 Belvoir Road
Building 200
Erica F. Drame, AFC, CCRR
Financial Readiness Program
Manager
Tel: 703-805-1833
[email protected]
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