Army Financial Readiness

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Army Financial Readiness

• Crystal Terhune and Jean Austin
• University of Maryland Cooperative Extension

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Army Financial Readiness
Dept of Defense

• Principals and Values
• Budgeting
• ID Theft

• Banking
• Savings/Investing
• Credit
• Insurance
• Large purchases/scams

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Emergency Fund
Goals
Budget
Life
Health
Credit Record
Financial Plan
Insurance
Property
Financial Statements
Financial Records
Disability
Liability
Financial Foundation
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Lifeline
How do you need to plan your money management in
order to meet your goals? How much money will
you need to reach those goals?
birth
85 yo
Draw a line to represent your life. What is
the average life expectancy in your family
history? Write that number on the far right of
your lifeline. What is your current age? Make
a mark on the lifeline representing where you
are NOW. Think of milestones that have already
happened to you and mark them on your lifeline.
Ideas Graduating high school/college, buying a
car, etc. What do you want to accomplish in the
next 5/20/30 years? Map those events onto your
lifeline.
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How Do You Rate As A Money Manager?
Complete the exercise. . . Total your scores in
each column
SCORING A1 B3 C5
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How do you rate???
Are you comfortable with how you rated?
Total Score
OVER 110 SPENDTHRIFT 70-110
BALANCED BELOW 70 CONSERVATIVE
spendthrift 'sp?nd??r?ft/ spend-thrift
noun 1.a person who spends possessions or money
extravagantly or wastefully. adjective
2.wastefully extravagant.
balanced 'bæl ?ns/ bal-uh ns noun,
verb, -anced, -ancing. 1. Being in a state of
equilibrium or equipoise equal distribution of
weight, amount, etc. 2. Having mental steadiness
or emotional stability habit of calm behavior,
judgment, etc.
conservative k?n's?r v? t?v/ kuh
n-sur-vuh-tiv adjective 1.traditional in
style or manner avoiding novelty or showiness
noun 2.a person who is conservative in
principles, actions, habits, etc.
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Why does it matter?

• Being a smart consumer
• can save you
• Money
• Stress
• Trouble
• What are the benefits
• of smart money mgmt?

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If you DONT manage your money well, what are
some of the things that can happen?
Potential Problems
RISING DEBT
LOST POSSESSIONS
REPOSSESSION
LOSS OF CREDIT
PAY GARNISHMENT
LOSE CLEARANCE
LOSE PRIVELEGES
CANT RE-ENLIST
DISCHARGED / LOSE JOB
INABILITY TO REACH YOUR GOALS!!!
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Turn your dreams into goals!
So. . . Make your money work for you!

• What are your financial dreams?

How can you make them happen?
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Garnishment
25 GARNISHMENT LIMIT IS ONLY FOR CONSUMER
DEBT. GARNISHMENT NOT LIMITED TO 25 FAMILY
SUPPORT PAYMENTS EXCHANGE, NEX AND DPP ACCOUNT
CHARGES REPAYMENT OF PREVIOUS OVERPAYMENTS
TAXES, IRS DEBTS
Military Exchange credit accounts and Deferred
Payment Plans (DPP) have automatic garnishment
provisions in their contracts. (no need for
court ALL of your pay can be taken!)
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Set S.M.A.R.T. Financial Goals!

• Specific
• Measurable
• Agreeable
• Realistic
• Time-bound

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Changing dreams to specific goals
What thought had to go into these? What other
info would you need?
I wish I could drive a car thats paid for. By
packing (not buying) lunch 2 days/wk, I will pay
an extra 50/month on my car payment so my car
will be paid off by Dec. 2009.
I wish I wasnt drowning in debt! I will only
go out partying with friends every other week and
Ill put the extra 100 toward debt payments to
pay them off by October 2010.
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So, being a smart consumer means

• Recognizing your spending habits
• Knowing where you stand
• Knowing where you want your money to take you
• Setting goals so you can get there!