1. 1 of 13 Financial Education for Members of the Armed Services

2. 2 of 13 Financial Readiness Program Topics of Discussion Budget Credit and Security Clearance Issues Low Cost Loans Thrift Savings Plan

3. 3 of 13 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 - Spirituality - Social and role functioning- Physical health - Relationship functioning and family life - Financial well-being Anticipating the Landscape in the Years Ahead: Military Members Transition to a Post-War Mission, July, 2014

4. 4 of 13 Financial Readiness Program 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 Financial Readiness = Mission Readiness DODI 1342.22, July 3, 2012

5. 5 of 13 Financial Readiness Program The Pillars of Personal Financial Readiness 1.Establishing good credit 2.Maintaining financial stability 3.Committing to routine Savings 4.Taking part in the Thrift Savings Plan and Savings Deposit Program 5.Enrolling in Servicemembers Group Life Insurance (SGLI) 6.Taking only low-interest loans 7.Using low-cost Morale, Welfare and Recreation programs 8.Preserving and protecting security clearances

6. 6 of 13 Financial Readiness Program 2013 Quick Compass of Financial Issues Survey of Active Duty members from all four Service branches (Army, Navy, Marine Corps and Air Force) 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.

7. 7 of 13 Financial Readiness Program Date:Living ExpensesDebt Information Rent/Mortgage $ -CreditorMo PmtAcct Bal Name:Property Taxes, Assoc Dues, etc $ -Tricare Dental $ - Electric/Gas/Water/Sewage/Trash Removal $ - Rank:Proud Soldier!Telephone (Home) $ - Telephone (Cellular) $ - SSN:000-00-1234Cable Plan (Phone, Internet, etc) $ - Internet $ - Cable $ - Groceries (Food, Cleaning, Hygiene, etc) $ - School Lunches (Or Other Lunches) $ - EntitlementsGasoline $ - Base Pay $ -Auto Maintenance/Repairs $ - BAS / RATS $ -Public Transportation $ - BAH $ -Child Care $ - Special Pay $ -Nursery, Kindergarten or Private School $ - Other $ -Allowances $ -Totals $ - Other $ -Recreation, Entertainment $ - Total Entitlements $ -Meals Out $ - Savings $ - 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 Total Collections $ -Medical Expenses (Co-pay, Prescriptions) $ --Living Expences$0.00 Income Charity, Church, etc $ --Debts$0.00 SM Net Monthly Income $ -Investments $ - Self Allotments $ -Child Support/Alimony $ -Leaves$0.00 Other: $ -Other: Walmart $ - Other: $ -Other: $ -Current Debt to Income Ratio Total Net Mo. Income $ -Total Living Expenses $ -#DIV/0! ERICA F. DRAME GS-12 Financial Readiness Program

8. 8 of 13 Understanding Good Credit DoD Congressional Report, Enhancement of Protections on Consumer Credit for Members of the Armed Forces and Their Dependents, April, 2014 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. Financial Readiness Program

9. 9 of 13 Financial Readiness Program 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 Why Low Interest Loans are Important

10. 10 of 13 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.

11. 11 of 13 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)

12. 12 of 13 Financial Readiness Program Thrift Savings Plan (TSP)

13. 13 of 13 Basic Investing Financial Readiness Program Benefits of TSP Rule of 72 Risk Tolerance Types of Market Risks How much do you need for Retirement?

14. 14 of 13 Financial Readiness Program Resources

15. 15 of 13 Financial Readiness Program Army Community Service 9800 Belvoir Road Building 200 Erica F. Drame, AFC, CCRR Financial Readiness Program Manager Tel: 703-805-1833 erica.f.drame.civ@mail.mil