AMBA Conference 05 15 09 C1.FEmery.ppt

Defense Senior Leadership Spouses’ Conference

NGB – Joint Family ProgramVolunteer Workshop

Department of Defense

Financial Readiness

Frank A. Emery

Acting Director

Office of Personal Finance

Military OneSource Center

OSD, Military Community and Family Policy

Frank A. Emery

Acting Director

Office of Personal Finance

Military OneSource Center

OSD, Military Community and Family Policy

Association of Military Banks of AmericaAssociation of Military Banks of America



Topics

• Financial Readiness Campaign

• Financial Roadshow

• FINRA Military Retirement Confidence Survey

• Predatory Lending

• Questions


NGB – Joint Family ProgramVolunteer WorkshopGood news……?

• Our Service members and their families are not immune from the storm, but they do have some shelter:

Guaranteed paycheck

Spousal employment programs

Low-cost child care programs

Medical/dental benefits

Commissary/Exchange privileges & other installation support

Special pays & moving allowances

Tax-free housing and subsistence allowances

Only 25-30% own homes as primary residence



“Financial Readiness = Mission Readiness”

Good creditFinancial stability Regular savingsContribute to TSPDon’t Opt-Out for SGLILow % loansSecurity Clearance

Bad creditBankruptcy No emergency savingsNo retirement savingsNo SGLI/insurance Predatory loansNo Clearance

Mission Success vs Mission Failure



• Started in 2003 to reduce the stressors associated with financial issues on Service members and families

• Education, resources, protections

• Federal, state, local/non-profit outreach and programs

• Platform represented by 8 “Financial Pillars”

The DoD Financial Readiness Campaign

DoD has been emphasizing financial readiness as a critical component of mission readiness long before the

current economic crisis:

DoD has been emphasizing financial readiness as a critical component of mission readiness long before the

current economic crisis:



The Pillars of Personal Financial ReadinessGood Credit

FinancialStability

RoutineSavings TSP/SDP

SGLI/Insurance

Low %Loans

SecurityClearanceMWR



“The Right Information, at the Right Time, to the Right People”

• Delivering correct, user-friendly information• Reaching Guard and Reserve families• Reaching geo-isolated families• Meeting emerging expectations of new

generations• “High Tech-High Touch”• Building a worldwide, trusted communication

system to connect with troops and families

Changing Community = Changing Services

Challenges

The Digital Generation



• Tools for installation commanders upon request

• Tailored to the needs of the installation Assist the commander, installation PFM to reach troops & families Designed to augment, not replace, existing efforts

• 1-day events which feature: Financial personalities as keynote speakers Workshops from library of topics One-on-one financial counseling Stay behind teams Youth financial education activities

• Installations encouraged to utilize all installation resources to include Banks and Credit Unions

Financial Roadshows



The Savage Truth on Money "America's Money Answers Man"

Sammy the Rabbit John Sileo

“Think Like a Spy”

Terry SavageJason Goodman

Guest Speakers

Identity Theft E

xpert

Dr. Robert Manning

Credit Card Nation



Take Five: What I Wish I Had Known About Personal Finance Better Than a Budget: Develop a Spending Plan That Will Keep You On Track The Perils of Plastic: Avoid Drowning in Debt... Charge Wisely! Dream Big - Plan Now! Make Your Ideal Retirement a Reality Pay Yourself First: Why You Should Sign Up for the Thrift Savings Plan Today Have You Fed Your Pig Today? Simple Tips for Saving & Investing Ready for Everything? Insurance Essentials for the Service Member With or Without

a Family The Wheels You Want: Successful Car-Buying Strategies Home, Sweet Home: Strategies for Home-Buying and Protecting Against Foreclosure You’ve Earned It! Making the Most of Your Military Benefits Before You Take Off: Financial Planning for Deployment Don’t Lose It! How to Protect Yourself Against Identity Theft

Workshops



Air Force Marine Corps Navy Army

Roadshow Locations

Fort LewisMcChord AFB

4 Dec 08

Fort LewisMcChord AFB

4 Dec 08Grand Forks AFB

29 Jan 09Grand Forks AFB

29 Jan 09

Little Rock AFB2 Mar 09

Little Rock AFB2 Mar 09

Buckley AFB25 Sep 09

Buckley AFB25 Sep 09

Fort Polk6/11 May 09Fort Polk

6/11 May 09

MCRD, San Diego24 Feb 09

MCRD, San Diego24 Feb 09

MCAS, Miramar21Feb 09

MCAS, Miramar21Feb 09

Camp Pendleton25 Feb 09

Camp Pendleton25 Feb 09

Beale AFB7 Jan 09

Beale AFB7 Jan 09

Parris Island andMCAS, Beauford

24 Feb 09

Parris Island andMCAS, Beauford

24 Feb 09

USS Peleliu26 Feb 09

USS Peleliu26 Feb 09

NAVSTA San Diego23 Feb 09

NAVSTA San Diego23 Feb 09

Luke AFB13 Nov 08Luke AFB13 Nov 08

MCAS Yuma3/4 Dec 09

MCAS Yuma3/4 Dec 09 MCAS, New River

Aug/Sep 09MCAS, New River

Aug/Sep 09

29th Palm, USMC (?)29th Palm, USMC (?)

Peterson AFB19-25Jul 09

Peterson AFB19-25Jul 09

Nellis AFB13 Jun 09

Nellis AFB13 Jun 09

Lackland AFB10 Dec 08

Lackland AFB10 Dec 08

Fort BlissFort Bliss

Fort Drum5 Nov 08 - - -Fort Drum5 Nov 08 - - -

Fort Belvoir24 Jan 09

Fort Belvoir24 Jan 09

NAB Little Creek25 Feb 09

NAB Little Creek25 Feb 09

WRAMC29 Sep 09WRAMC29 Sep 09

Fort Myer28 Apr 09Fort Myer28 Apr 09

Goodfellow AFB24 Jul 09

Goodfellow AFB24 Jul 09

Fort Hood24 Jul 09

Fort Hood24 Jul 09

Fort Carson17-18 Sep 09Fort Carson17-18 Sep 09 Scott AFB

7 Oct 09 Scott AFB7 Oct 09

Fort Leonard Wood16 Oct 09

Fort Leonard Wood16 Oct 09

FE Warren AFB22 Sep 09

FE Warren AFB22 Sep 09

Eglin AFB14 Jan 09

Eglin AFB14 Jan 09

Tinker AFB5 Nov 08

Tinker AFB5 Nov 08

Fort Sill9 Sep 09Fort Sill9 Sep 09Vanderberg AFB

1-2 May 09Vanderberg AFB

1-2 May 09Los Angles AFB

26 Feb 09Los Angles AFB

26 Feb 09

Fort Meade10 Mar 09

Fort Meade10 Mar 09

Andrews AFB18 Feb 09

Andrews AFB18 Feb 09

Bolling AFB(Pentagon)22 Jun 09

Bolling AFB(Pentagon)22 Jun 09



Military OneSource

• Military One Source (www.militaryonesource.com)

24/7 world-wide assistance, on-line and by phone

“Money” Section

Telephonic financial counseling or face-to-face upon request

Effective 17 Nov: Partnership with National Foundation for Credit Council (NFCC)

Mortgage/foreclosure assistance

Referrals, connections to key helping agencies



Military Saves 2009

• 22 February - 1 March 2009• Events planned at installations world-wide• Incentivized savings programs at banks & credit unions• Over 55,000 Saver Pledge• 200+ defense credit unions and military banks accepted

millions in savings deposits• Military units large & small declared themselves Military

Saves organizations• Military Banks and Defense Credit Unions are trusted

agents!

Build Wealth, Not Debt!Build Wealth, Not Debt!



FINRA Military Financial Confidence Survey

• Military more likely to take an active role in financial planning

• Military has more realistic view of financial requirements/ preparations

• More outreach required to raise awareness of TSP

• Military financial educational programs and services are positively influencing financial behavior



How predatory are “predatory lenders”?



1 mile



NGB – Joint Family ProgramVolunteer WorkshopGreat News!

• Military Money magazine • Americans Well-Informed on Automobile Retailing Economics

(AWARE) reports:“America’s military personnel are particularly prepared for this

major financial event in their lives, more so than Americans in general….they are more likely than the average consumer to understand the process of buying and financing a vehicle, and to spend time researching their options”

0

5

10

15

20

25

30

35

40

45

1 2 3 4

Military

General Pop

1-Credit Card, 2-Vehicle Financing, 3-Furniture/Appliance Financing, 4-Home Improvement Loan

Military MembersResearch Financing

OptionsRespondents who

Completed > 3 hrs ofResearch



How Military Banks Can Help

• Continue to provide innovative, low cost products & services Incentivized Savings programs (Military Saves?), loan products,

ATM fees; SHORT TERM LOANS (to replace payday lending alternatives)

• Be accessible• Be proactive in providing educational services

Step up financial educational opportunities Meet with installation/unit leadership Know your installation Personal Financial Manager Attend events, clinics, picnics (Ask about Financial Roadshows at

your base)• Make appropriate referrals

Military One Source, other DoD financial partner resources

• Know, understand Service members and families Local demands, stresses of deployment Unique challenges



Join us to help Service members and Families make sound

financial decisions.

Thank you for your service to our Military!



Questions?

Frank EmeryActing Director, Office of Personal Finance

[email protected]



• Installation/Unit Financial Managers/Specialists

• Military One Source

Telephonic counseling

• Military Family Life Consultants

“Personal Financial Counselors” (PFC)

AFC/CFP-certified

On-demand assignments upon installation request

Briefings, one-on-one counseling, education & training

• Financial Readiness Partners

Financial Counseling






FINRA Military Financial Confidence Survey• Released 19 February 09• Purpose: capture military’s attitudes/perceptions about

retirement/finances• Most pressing financial issues:

Other10%

Children's Education

6%

Rent/Mortgage5%

Emergency Fund7%

Making Ends Meet18%

Paying Down Debt29%

Retirement25%

Documents

AMBA Conference 05 15 09 C1.FEmery.ppt