1. Predeployment Training | 1 Financial Planning for Deployment—Unit 1 Making the Best Financial Choices 2008

2. Predeployment Training | 2 Objectives  To review the importance of financial goal setting in planning for deployments  To provide information on how money attitudes and expectations influence goals  To discuss how to use goals to direct spending  To discuss how to make wise choices with your use of credit  To review how to make wise financial choices during deployment that will provide for long- term security

3. Predeployment Training | 3 Purpose of this Training  Prepare for deployment  Review your financial affairs  Prepare a financial timeline for yourself and/or your Family  Learn how to use goals to direct deployment spending  Learn how to make wise choices about your use of credit  Prepare a plan in the event of casualty

4. Predeployment Training | 4 Family Time Line  Reveals future financial needs  Tracks major life events  Provides rough estimate of funds needed  Helps estimate how much to save  Addresses Spouse employment

5. Predeployment Training | 5 Financial Security Means… Feeling Good...  About yourself  About the way you spend money  About your ability to plan during deployments  About financial plans for the future in the event of a catastrophic event

6. Predeployment Training | 6 Increase Financial Security By Understanding  What influences your money management practices  Your beliefs, values, attitudes and expectations  Your Goals  How you make financial choices  How your behavior needs to change

7. Predeployment Training | 7 If Changes are Needed  Look at how you are spending your money  What influences your choices  Identify behaviors that keep you from reaching your goals  Look for events that may change how you spend money

8. Predeployment Training | 8 Money Attitudes and Expectations Have an impact on the plans and choices you make:  Realistic expectations -- accepting the right of each person to make decisions  Unrealistic expectations -- cannot accept others acting or thinking differently than you

9. Predeployment Training | 9 Unrealistic Expectations = Financial Stress  You think money will go farther than it does  You want to control others’ choices  Family members may not communicate  You do not acknowledge individual differences  You earn money, you alone decide how to spend

10. Predeployment Training | 10 Using Goals to Direct Your Spending  Monetary goals provide a road map  Use to direct future financial decision making

11. Predeployment Training | 11 Reaching My Goals  Realistic – possible to achieve  Short term (1 month to 1 year)  Intermediate term (1 to 5 years)  Visionary – requires discipline and dedication  Long term (5+ years)

12. Predeployment Training | 12 Needs vs. Wants  Do you spend your money on things that are important to you/your Family?  Which expenses are things you need?  Which are things you want?  Needs should always be given priority.

13. Predeployment Training | 13 To Set and Achieve Goals  Clearly identify  Be realistic and specific  Know the price  Weigh benefits of end result  Brainstorm options  Commit to goal  Be flexible Do not Give Up!

14. Predeployment Training | 14 Spending Your Resources Rational (Planned)  Well thought-out  Controlled Impulse  Unplanned spending  Made on the spur of the moment

15. Predeployment Training | 15 Forced Spending  Not planned ahead of time  Must make a choice

16. Predeployment Training | 16 Compulsive Spending Chronic buying or spending that may be addictive  Cannot stop  Disrupts life  Has negative results It is not the STUFF that is wanted, but the ACTIVITY of shopping or gambling!

17. Predeployment Training | 17 Consequences of Compulsive Spending or Gambling  Extreme levels of debt  Savings may be depleted  Anxiety and frustration  Subjective sense of loss of control  Marital/Family problems

18. Predeployment Training | 18 Teamwork in Money Management Money can be a source of conflict…Spouses need to work together to:  Distinguish between wants and needs  Manage your checkbook(s) carefully and accurately  Control credit card spending  Establish a long-term plan

19. Predeployment Training | 19 Making Credit Work In Your Spending Plan How much debt is too much? Credit Payments = no more than 15-20% of take-home pay or no more than 1/3 of spendable income Take-home Pay - Basic Needs Spendable Income

20. Predeployment Training | 20 Using Credit—There are Advantages  Meets Emergencies  Builds a Good Credit Rating  Buys Bargains  Has Conveniences  May Get Better Service  Able to Use Item(s) Earlier

21. Predeployment Training | 21 There Are Disadvantages to Using Credit  Tend to Overbuy  Items Cost More  Commit Future Income

22. Predeployment Training | 22 To Reduce Credit Costs…  Find the best price  Make a large down payment  Shop for low APR  Pay back as soon as you can  Pay bills on time  Pay extra with each payment  Use only when needed  Avoid payday, vehicle title, and refund anticipation loans

23. Predeployment Training | 23 More on Payday Lending and the Military Lending Act (MLA) The MLA covers:  Payday Loans  Vehicle Title Loans  Tax Refund Anticipation Loans Limitations are placed on loans to Military members and their Families—the Maximum annual percentage rate (MAPR) cannot exceed 36%

24. Predeployment Training | 24 You have to want to reach your goals…  Make changes if you are not happy with your financial situation  You may have to get rid of old behaviors

25. Predeployment Training | 25 Tips  You have to want to reach your financial goals. No one else can do it for you.  Begin your deployment planning with a review of your financial goals.  Develop a timeline to achieve your goals.  Distinguish between your wants and needs.  Use your goals to direct your spending.  Evaluate your use of credit  Limit your use of payday, vehicle title, and refund anticipation loans

26. Predeployment Training | 26 Questions?