Army Financial Readiness

Crystal Terhune and Jean AustinUniversity of Maryland Cooperative

Extension

Army Financial Readiness

Principals and Values

Budgeting ID Theft

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

Dept of Defense

Emergency Fund

Goals Budget

Financial Plan

Financial Statement

s

Financial Records

Credit Record

Life Health

Insurance

Disability

Property

Financial Foundation

Liability

Lifeline 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.

birth 85 yo

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?

How Do You Rate As

A Money Manager?

SCORING

A=1B=3C=5

Complete the exercise. . .

Total your scores in each column:

How do you rate???

• OVER 110: SPENDTHRIFT

• 70-110: BALANCED

• BELOW 70: CONSERVATIVE

Total Score:

Are you comfortablewith how you rated?

spend thrift⋅   ˈspɛndˌθrɪft/ [spend-thrift] –noun 1.a person who spends possessions or money extravagantly or wastefully.adjective 2.wastefully extravagant.

bal anced⋅   ˈbæl əns/ [bal-uh ns] noun, verb, -anced, -anc ing.⋅ 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.

con serv a tive⋅ ⋅ ⋅   kənˈsɜr və tɪv/ [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.

Why does it matter?

Being a smart consumer can save you:

MoneyStressTrouble

What are the benefits of smart money mgmt?

Potential ProblemsIf you DON’T manage your money well, what are some of the things that can happen? RISING DEBT

LOST POSSESSIONS

REPOSSESSION

LOSS OF CREDIT

PAY GARNISHMENT*

LOSE CLEARANCE

LOSE PRIVELEGES

CAN’T RE-ENLIST

DISCHARGED / LOSE JOB

INABILITY TO REACH YOUR GOALS!!!

Turn your dreams into goals!

What are your financial dreams?

How can you make them happen?

So. . . Make your money work for you!

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 accountsand Deferred Payment Plans (DPP) have automatic garnishment provisions in their contracts. (no need for court– ALL of your pay can be taken!)

Set S.M.A.R.T.

Financial Goals!

SSpecific

MMeasurable

AAgreeable

RRealistic

TTime-bound

“I wish I wasn’t drowning in debt!” I will only go out partying with friends every other week and I’ll put the extra $100 toward debt payments to pay them off by October 2010.

“I wish I could drive a car that’s 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.

Changing dreams to specific goals What thought had to go into these?

What other info would you need?

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!