The Armed Forces Financial Network

1
Military Community and Family Policy
Personal Financial Readiness Pillars
Brenda McDaniel Office of Family Readiness
Policy Office of the Deputy Assistant Secretary
of Defense
2
The Pillars of Personal Financial Readiness
Good Credit
Financial Stability
Routine Savings
SGLI/ Insurance
Low Loans
Security Clearance
TSP/SDP
MWR
Deployment
3
Decision

• Revise and reduce the eight (8) Financial
  Readiness Pillars to four (4) Financial Readiness
  Pillars embedding the myMoney Five in the four
  pillars
• Manage
• Save Invest
• Protect
• Future Planning
• The Financial Readiness Pillars grouped into two
  sections
• Financial Readiness Standards of Behavior
• Military Financial Resources

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Financial Pillars
DoD Financial Readiness Pillars
With Standards of Behavior and Financial Resources
Overall Financial Well-Being
Being an Informed Consumer
Manage
Save Invest
Protect
Future Planning

• Manage Money
• Set Goals
• Earn
• Spend
• Borrow Wisely

• Save First Then Invest
• Life-Cycle Decisions
• Retirement Plans

• Consumer Protection
• ID Theft
• Consumer Skills
• Prevention of Scams
• Insurance
• Emergency Savings
• Transition Planning

• Evaluate Plans Often
• Decision Making
• Military Life-Cycle Decision
• Financial Planning
• Estate Planning

5
Financial Well Being

• Consumers can experience financial well-being -
  or a lack of it - regardless of income.
• A personal state, not fully described by
  objective financial measures.
• Well-being is defined as having financial
  security and financial freedom of choice, in the
  present and in the future.
• Source Consumer Financial Protection Bureau
  (2015). Financial Well-being What it means and
  how to help.
• Available at http//www.consumer
  finance.gov/reports/financial well-being

6
Financial Behaviors

• Guided by
• Personality
• Attitudes
• Knowledge
• Skills
• Actions consumers take with the options available
  to them
• Source Consumer Financial Protection Bureau
  (2015). Financial Well-being What it means and
  how to help.
• Available at http//www.consumer
  finance.gov/reports/financial well-being

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Pillar I - Manage

• Manage Money
• Manage current income and expenses
• The Standards of Behavior
• Set Goals and Earn
• Spend
• Borrow Wisely
• Resources
• Military OneSource
• My Training Hub financial courses
• Personal Financial Managers (PFMs)
• Personal Financial Counselors (PFCs)
• Banks and Credit Unions
• Financial Collaborators
• Financial Calculators
• Retirement Calculators

8
Pillar II - Save Invest

• Save First Then Invest
• Pay yourself first
• The Standards of Behavior
• Establish routine savings
• Life-Cycle Decisions
• Retirement Plans
• Save for significant life events
• Resources
• Military Banks and Defense Credit Unions
• Military OneSource
• PFMs
• PFCs
• Financial Collaborators
• Banks and Credit Unions
• Financial Calculators
• Retirement Calculators

9
Pillar III - Protect

• Consumer Protection
• Prevent ID Theft and protect assets
• The Standards of Behavior
• Consumer skills
• Prevention of scams
• Insurance
• Emergency savings
• Planning for transitions
• Resources
• Use Credit Reporting Agencies
• Services Relief and Aid Organizations
• Military OneSource
• PFMs
• PFCs
• Financial Collaborators

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Pillar IV - Future Planning

• Evaluate Plans Often
• Plan for emergency, major purchase, and
  retirement
• Standards of Behavior requires
• Evaluation of financial planning and estate
  planning
• Identify legal plans
• Decision-making throughout the Military
  Life-Cycle
• Resources
• Military OneSource
• PFMs
• PFCs
• Financial Collaborators
• Banks and Credit Unions
• Financial Calculators
• Retirement Calculators

11
Installation Credit Unions

• In collaboration with PFMs and PFCs provide
  personal financial education and counseling
• Setting Goals
• Spending plan
• Borrowing - low interest rates
• Consumer skills
• Prevention of scams
• Emergency savings

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Closing Message

• Manage
• Save Invest
• Protect
• Future Planning
• End state To serve as a reminder to educate,
  practice, and implement positive financial
  behaviors and skills.