I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Headquarters U.S. Air Force

Airman & FamilyReadiness CenterFTAC Presentation

Personal Financial Readiness

For

First Term Airmen

One Team, One Family, One Mission

Military Life Cycle

Military Life Cycle (MLC) – A transition model to create a career-

ready military that provides servicemembers a continuous

opportunity to prepare for civilian career success.

Goals for Servicemembers:

Allow servicemembers deliberate opportunities to plan for

transition throughout their careers

Ease burden of completely preparing for transition at end of

service

Draw attention to skills acquired in the military

Initial MLC Tasks:

eBenefits enrollment/Training

Principles of budgeting

One Team, One Family, One Mission

eBenefits

Access and enroll at: https://www.ebenefits.va.gov/ebenefits-

portal/ebenefits.portal

View veterans benefits all in one location

Categories of Benefits:

Compensation

Education

Insurance

Health

Housing

Personnel

Fly - Fight - Win

Overview

Spending Plan Basics

Savings and Investing

Banking and Allotments – Choosing a Financial Institution

Credit and Debit Management

Car Buying

Base Specific Issues

Financial Counseling Resources

Summary

Fly - Fight - Win

Leave and Earnings Statement

Individual Leave & Earning Statements available

on the myPay Website:

https://mypay.dfas.mil/mypay.aspx

Understand entitlements, deductions, and

allotments.

Fly - Fight - Win

Type of Pay Details Taxed Note

Basic

Pay

Based on rank & time

in serviceYES Pay increases @ 4 months, 2, 3, 4, & all even years thereafter.

Each January, basic pay is increased to incorporate cost of

living increase

Allowances

Housing (BAH) To offset housing

expensesNO Must be approved; different rates based on several factors; dorm

residence receive partial

Subsistence (BAS) To assist with the

cost of foodNO Must be approved; amount same regardless of # of dependents;

meal card holders receive partial

Clothing To maintain and/or

replace uniformsNO Basic replacement allowance received 1st 3 years then standard

replacement each year thereafter (upon anniversary of

enlistment)

Miscellaneous Such as flight pay,

hostile fire pay, etc.…YES Received depending upon career field and other factors

LES: The Basics

Fly - Fight - Win

DEFENSE FINANCE AND ACCOUNTING SERVICE MILITARY LEAVE AND EARNINGS

STATEMENT

IDNAME (LAST, FIRST, MI)

COOL, JOSEPH B.

SOC SEC NO.

111-11-1111

GRADE

E-2

PAY DATE

01JANXX

YRS SVC

0

ETS

0 1OCTXX

BRANCH

AF

ADSN/DSSN

4065

PERIOD COVERED

1-31 DEC 02

ENTITLEMENTS DEDUCTIONS ALLOTMENTS SUMMARY

A

B

C

D

E

F

G

H

I

J

K

L

TYPE AMOUNT +AMT FWD 0TYPE AMOUNTTYPE AMOUNT

Basic Pay 1509.9

BAH 7.20

BAS 294.43

TOTAL 1811.53

FICA (Social Security) 93.61

FITW (Federal Income Tax) 160.34

SGLI for $200,000 29.00

State Tax 39.00

Medicare 21.89

AFRH 0.50

Meal Deduction 242.15

MGIB 100.00

Mid-Month Pay 437.52

TOTAL 1024.01

Discretionary Allotment 300.00

Discretionary Allotment 50.00

TOTAL 350.00

+TOT ENT 1811.53

-TOT DED 1024.01

-TOT ALMT 350.00

-NET AMT 437.52

-CR FWD 0

=EOM PAY

437.52

PAY

DATA

FICA

TAXES

LEAVE BF BAL

0

ERND

2.5

CR BAL

5.5

ETS BAL

102

LV LOST

0

LV PAID

0

USE/LOSE

0

FED

TAXES

WAGE PERIOD

1326.30

WAGE YTD

15912.00

M/S

S

ADDL TAX

0

EX

0

TAX YTD

1468.08

WAGE PERIOD SOC WAGE YTD SOC TAX YTD MED WAGE YTD ST

NJ

STATE

TAXES

WAGE PERIOD

0

WAGE YTD

0

M/S

S

TAX YTD

0

EX

0

BAQ TYPE BAQ DEPN VHA ZIP RENT AMT SHARE JFTR DEPNS 2D JFTR BAS TYPE CHARITY YTD TPC PACIDN

Thrift

Savings

Plan

(TSP)

BASE PAY RATE BASE PAY CURRENT SPEC PAY RATE INC PAY RATE INC PAY CURRENT BONUS PAY RATE BOPNUS PAY CURRENTSPEC PAY CURRENT

CURRENTLY NOT USED TSP YTD DEDUCTIONS EXEMPTDEFERRED CURRENTLY NOT USED

REMARKS YTD ENTITLE___________________ YTD DEDUCT___________________

REMEMBER!!!

If you live in the dorm,

check the deductions section

of your LES to ensure your

BAS is being deducted.

Meal Deduction 242.15

Fly - Fight - Win

DEFENSE FINANCE AND ACCOUNTING SERVICE MILITARY NET PAY ADVICE

The amount in block 6 is your net pay for the pay date indicated in block 4 and was sent to the financial organization in block 7 for credit to your account. When cashing a

personal check at your financial organization on payday, advise your teller you are a participant in the Direct Deposit Program. It will help you with better service. If you are

paid once a month or you do not have your pay sent to a financial organization for direct deposit, information in block 5 through 7 will not be present and this form is intended

to provide you with the remarks information only.

111-11-1111 4065 15 DEC 01

Joseph B. Cool

201 Money Ave 5. ACCOUNT NUMBER 6. NET PAY AMOUNT

Cash SC 22222-2222 12345678 436.16

7. YOUR NET PAY WAS FORWARDED TO:

YOUR BANK/FINANCIAL INSTITUTION

6943 DORCHESTER ROAD

CHARLESTON SC 29418-3419

8. REMARKS

DEFENSE FINANCE AND ACCOUNTING SERVICE MILITARY NET PAY ADVICE

The amount in block 6 is your net pay for the pay date indicated in block 4 and was sent to the financial organization in block 7 for

credit to your account. When cashing a personal check at your financial organization on payday, advise your teller you are a

participant in the Direct Deposit Program. It will help you with better service. If you are paid once a month or you do not have your

pay sent to a financial organization for direct deposit, information in block 5 through 7 will not be present and this form is intended to

provide you with the remarks information only.

1. MEMBER’S NAME AND ADDRESS

437 MSS DPF

Joseph B. Cool

201 Money Avenue

Cash SC 22222-2222

2. SSN

111-11-1111

3. ADSN/DSSN

4065

4. PAY DATE

15 DEC XX

5. ACCOUNT NUMBER

1 2 3 4 5 6 7 8 9 1 0

6. NET PAY AMOUNT

437.52

7. YOUR NET PAY WAS FORWARDED TO:

MONEY BAGS FINANCIAL BANK, INC.

12345 CASH COW LANE, SUITE C

NORTH CHARLESTON, SC 11111-1111

8. REMARKS

This is what your mid month

statement will look like when viewed on line.

Fly - Fight - Win

Servicemember’s

Group Life Insurance

SGLI provides group term life insurance.

You are automatically covered on your first day of active duty or active

duty for training, unless you decline or reduce your coverage.

The maximum amount of SGLI coverage you may have is $400,000.

The current monthly cost of SGLI is $28.00 for $400,000 of coverage,

plus $1.00 for Traumatic SGLI ($29 total).

You may elect to be insured for lesser amounts in increments of $50,000,

The cost is $3.50 per month per $50,000.

Fly - Fight - Win

SGLI – Advantages

Very affordable premium.

Pays if death is in the line of

Military Duty…other policies

may contain “war clauses.”

Family coverage for spouses

very affordable.

Children receive $10K

of coverage for FREE.

Members have 120 days to

convert SGLI coverage to

VGLI upon separation from

service.

Higher premiums, but no

medical exam/proof of

good health required if

converted within 120

days.

Fly - Fight - Win

“What type of pay

helps me to offset

the cost of food?”

Question?

Fly - Fight - Win

http://www.cnpp.usda.gov

Food Cost Plans

Fly - Fight - Win

The Military Pay Charthttp://www.dfas.mil/militarymembers/payentitlements/militarypaytables.html

BASIC PAY—EFFECTIVE JANUARY 1, 2016Grade 2 or less Over 2 Over 3 Over 4 Over 6 Over 8 Over 10 Over 12 Over 14 Over 16 Over 18

O-10

O-91

O-81

9,946.20 10,272.00 10,488.30 10,548.60 10,818.60 11,269.20 11,373.90 11,802.00 11,924.70 12,293.40 12,827.10

O-71

8,264.40 8,648.40 8,826.00 8,967.30 9,222.90 9,475.80 9,767.70 10,059.00 10,351.20 11,269.20 12,043.80

O-62

6,267.00 6,885.30 7,337.10 7,337.10 7,365.00 7,680.90 7,722.30 7,722.30 8,161.20 8,937.00 9,392.70

O-5 5,224.50 5,885.70 6,292.80 6,369.60 6,624.00 6,776.10 7,110.30 7,356.00 7,673.10 8,158.50 8,388.90

O-4 4,507.80 5,218.20 5,566.50 5,643.90 5,967.00 6,313.80 6,745.80 7,081.50 7,314.90 7,449.30 7,526.70

O-3 3,963.60 4,492.80 4,849.20 5,287.20 5,540.70 5,818.80 5,998.20 6,293.70 6,448.20 6,448.20 6,448.20

O-2 3,424.50 3,900.30 4,491.90 4,643.70 4,739.40 4,739.40 4,739.40 4,739.40 4,739.40 4,739.40 4,739.40

O-1 2,972.40 3,093.90 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10

O-33

5,287.20 5,540.70 5,818.80 5,998.20 6,293.70 6,543.30 6,686.70 6,881.40O-23

4,643.70 4,739.40 4,890.30 5,145.00 5,341.80 5,488.50 5,488.50 5,488.50O-13

3,740.10 3,993.60 4,141.50 4,292.40 4,440.60 4,643.70 4,643.70 4,643.70W-5

W-4 4,095.90 4,406.10 4,532.40 4,656.90 4,871.10 5,083.20 5,298.00 5,620.80 5,904.00 6,173.40 6,393.90

W-3 3,740.40 3,896.40 4,056.30 4,108.80 4,276.20 4,605.90 4,949.10 5,110.80 5,297.70 5,490.30 5,836.50

W-2 3,309.90 3,622.80 3,719.40 3,785.40 4,000.20 4,333.80 4,499.10 4,661.70 4,860.90 5,016.30 5,157.30

W-1 2,905.50 3,218.10 3,302.10 3,479.70 3,690.00 3,999.60 4,144.20 4,346.10 4,545.00 4,701.60 4,845.30

E-94

4,948.80 5,060.70 5,202.30 5,368.20 5,536.20E-8 4,050.90 4,230.00 4,341.00 4,473.90 4,618.20 4,878.00E-7 2,816.10 3,073.50 3,191.40 3,347.10 3,468.90 3,678.00 3,795.60 4,004.70 4,178.70 4,297.50 4,423.80

E-6 2,435.70 2,680.20 2,798.40 2,913.60 3,033.60 3,303.30 3,408.60 3,612.30 3,674.40 3,719.70 3,772.50

E-5 2,231.40 2,381.40 2,496.60 2,614.20 2,797.80 2,989.80 3,147.60 3,166.20 3,166.20 3,166.20 3,166.20

E-4 2,046.00 2,150.40 2,267.10 2,382.00 2,483.40 2,483.40 2,483.40 2,483.40 2,483.40 2,483.40 2,483.40

E-3 1,847.10 1,963.20 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00

E-2 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50

E-15

1566.90

Fly - Fight - Win

Allowances Continued…ALLOWANCES

Family Separation Allowance

All Pay Grades: $250

Basic Allowance for Subsistence (Effective January 1, 2016)

Family Subsistence Supplemental Allowance (Effective October 1, 2010)

Officers: $253.63

Enlisted: $368.29

All Pay Grades

Not to Exceed $1100.00

Clothing Allowances (Effective October 1, 2015)

Standard Initial Clothing Allowance (Enlisted Members Only)Army Navy Air Force Marine Corps

Male Female Male Female Male Female Male Female

1,643.45 1,888.07 1,797.42 1,982.74 1,389.18 1,597.93 2,007.82 1,945.65

Cash Clothing Replacement Allowance (Enlisted Members Only)Army Navy Air Force Marine Corps

Basic Male Female Male Female Male Female Male Female

327.60 349.20 320.40 327.60 248.40 252.00 403.20 392.40

Standard 468.00 496.80 457.20 468.00 352.80 360.00 601.20 576.00

Special 0 0 648.00 669.60 0 0 0 0

Fly - Fight - Win

BAH Rates2016 BAH (Basic Allowance for Housing)

E-1 thru E-4: In dorms/ Approx. $7.80

E-1 thru E-4: Without dependents / $855.00

E-1 thru E-4: With dependents / $1059.00

According to the 2015 Defense Travel Management Study, at Moody AFB:

75% of BAH goes toward rent (on avg.)

25% of BAH goes toward utilities (on avg.)

• BAH used to include the cost of renter’s insurance, but in 2015, this

changed. You are expected to assume a 1% out of pocket cost for this

item.

Input new BAH into spending plan in projected category

Example: $7.80 current, $855/$1059 projected

Fly - Fight - Win

www.defensetravel.dod.mil

Basic Allowance for Housing

Fly - Fight - Win

INCENTIVE AND SPECIAL PAYSAviation Career Incentive Pay

Years of Aviation Service

2 or

less

Over 2 Over 3 Over 4 Over 6 Over 14 Over 22 Over 23 Over 24 Over 25

125.00 156.00 188.00 206.00 650.00 840.00 585.00 495.00 385.00 250.00

Career Enlisted Flyer Incentive PayYears of Aviation Service

4 or less Over 4 Over 8 Over 14

150.00 225.00 350.00 400.00

Hazardous Duty Incentive Pay (Crew Member- Non-AWAC)

Pay Grade Amount Pay

Grade

Amount Pay

Grade

Amount Pay

Grade

Amount Pay

Grade

Amount

O-10 150.00 O-5 250.00 W-5 250.00 E-9 240.00 E-4 165.00

O-9 150.00 O-4 225.00 W-4 250.00 E-8 240.00 E-3 150.00

O-8 150.00 O-3 175.00 W-3 175.00 E-7 240.00 E-2 150.00

O-7 150.00 O-2 150.00 W-2 150.00 E-6 215.00 E-1 150.00

O-6 250.00 O-1 150.00 W-1 150.00 E-5 190.00

Hazardous Duty Incentive Pay (Non-Crew

Member)

Imminent Danger Pay/Hostile Fire Pay

ALL GRADES – 150.00 ALL GRADES – 225.00

Diving Pay HDIP (Parachute, Flight Deck, Demolition, &

Others)

Officers – 240.00 (Max) Enlisted – 340.00 (Max) All Grades – 150.00

(Member qualified for HALO Pay – 225.00).

COMBAT ZONE TAX EXCLUSION For other pays or specific requirements for the pays cited in this

table, go to the web at:

http://www.dtic.mil/comptroller/fmr/07a/index.html

Basic pay for the MCPO of the Navy, CMSgt of the AF, Sergeant Major of the Army or Marine Corps, basic pay is $7,816.20. Combat Zone Tax Exclusion for O-1 and above is based on this basic pay rate plus HFP/IDP ($225).

Special Pays

Fly - Fight - Win

Income Definitions

Total pay + allowances =

Gross Income

Gross income – tax deductions – additional deductions

such as allotments=

Net Income

You can think of “net income” as the amount of

money you “take home” from each paycheck.

Fly - Fight - Win

Net Income Example

E-5 over 8 years w/dependents

Total compensationBase Pay $2,845.20, BAS $348.44, BAH $1,581.00 (A) $4,774.64

Total tax deductionsSGLI (self/family/spouse), TSGLI, AFRH, federal taxes,

FICA (social security/medicare)

(B) $351.29

Total additional deductionsMonthly savings $200, monthly investing $63.83 (C) $263.83

Net Income (A-B-C) $4,159.52

Fly - Fight - Win

Deductions

Federal Taxes

2016 FICA Taxes

- Social Security (6.2% of Base Pay)

- Medicare (1.45% of Base Pay)

SGLI

AFRH

Possibly:

State Taxes

FSGLI

Meal Deduction

Fly - Fight - Win

Budget about 35% of your net income for rent/utilities.

Do you have an emergency fund?

Short term goal: $1,000

Long term goal: 3-6 months of living expenses

One-time Expenses:

Security deposit (normally equal to one month’s rent)

Utility deposits/activation fees

Moving expenses (gas, eating out, etc.)

Pet Deposit

Furnishing residence (What about “Rent-to-Own”?)

Setting up household (cleaning supplies, food, etc.)

Budgeting

Fly - Fight - Win

Goals

Unrealistic Goals

Vs.

Realistic Goals

Short Term Now to 2 years

Intermediate Term 2 to 5 years

Long Term Beyond 5 years

Fly - Fight - Win

Savings and Future Plans

Emergency Savings Fund: At least $1,000

Experts recommend setting side 3-6 months of living

expenses

Future Planning

Goal Specific

Separation/Retirement

Ball Park Estimate

www.asec.org

Fly - Fight - Win

How do we talk about money?

What is the dollar amount that separatesa rich man and a poor man?

Fly - Fight - Win

What is a spending plan?

Simply a plan to put your money where you want it to go!

Your A&FRC can help you develop a personalized

spending plan!

Fly - Fight - Win

SPENDING PLAN ACTIVITY

First cash flow plan is a draft.

Most of your variable expenses will be estimates.

For a more realistic spending plan, track your expenses or

review past banking/credit card statements.

Revise the original spending plan, incorporating goals based

upon changes you’d like to make.

Complete spending plan worksheets sections A – J

Debt-to-income ratio

Income - (Living Expenses + Monthly Debt Pmts) =

surplus/deficit/or zero

Fly - Fight - Win

Financial Readiness

(reference AFI 36-2906)

7.1 Members will pay their just financial obligations in a

proper & timely manner

7.2 Will provide adequate financial support of a

spouse or child/relative …(court order for

child support)

7.3 Will comply with 7.2 for garnishment

of wages

Fly - Fight - Win

Deployment Readiness

Financial Considerations

How will your budget change during deployment?

Expenses in deployed location

Expenses back at home

Who will be managing finances?

What are your goals? Make a plan for the extra money you will be receiving. (e.g. savings, TSP, debt mgmt.)

Are your financial and legal documents organized?

Do you have an emergency fund?

Fly - Fight - Win

Tips for Success

Complete budget before you depart; revisit regularly.

Keep track of account balances, due dates for bills, etc.

Practice financial fidelity: communicate with spouse about

out-of-the-ordinary expenses, bills, etc.

Set-up “Active Duty Alert” on credit reports.

Organization is key: know where your documents are,

keep list of accounts/contact info, etc.

Set-up “Auto-Pay” on accounts.

Update car insurance.

Fly - Fight - Win

Personal & Family

Financial Readiness

Review LES monthly.

Understand entitlements/deductions/allotments.

Develop Spending Plan. Revisit regularly.

Save for emergencies.

Plan for deployments.

Fly - Fight - Win 42

Intro & Spending Plan

Questions?

Fly - Fight - Win

What is the Difference Between

Saving and Investing?

Saving:

To meet short term goals

Emergencies

Investing:

Money set aside for future income,

benefit, or profit to meet long term goals

What is your “risk tolerance?”

Fly - Fight - Win

Savings & Investment Tools & Options

Savings Account

Certificates of Deposit

U.S. Savings Bonds

Money Market Accounts/Funds

Fly - Fight - Win

Other Options

Stocks

Bonds

Mutual Funds

Real Estate

Collectibles

Fly - Fight - Win

Maximize your Money

IRA (Individual Retirement Account)

Traditional

ROTH

Education

Any mutual fund, stock, bond, etc. can be part of an IRA account

Research companies and review the prospectus before sending any money.

Fly - Fight - Win

New AF Blended Retirement System

Under the current system, monthly retired pay is calculated as 2.5

percent times the number of years the member served times the

average of the highest 36 months of basic pay the member

received.

All members who enter service, or who sign a contract to serve, on

or before December 31, 2017 are grandfathered into the current

system, but can opt-into the new BRS.

As of 1 Jan 2018 – all joining members will automatically be

enrolled in BRS.

After 2 years of service – the first 3% of member contribution is

matched dollar for dollar by the Service. The next 2% is matched 50

cents on the dollar. Example – if a member contributed 5% of pay to

the TSP, the Service will contribute another 4% to the member’s

TSP account.

Militarypay.defense.gov

Fly - Fight - Win

The Power of Compounding Interest

Ben vs. Arthur:

Ben starts investing at age 19.

He invests $2,000/year for 8 years.

Avg. rate of return: 12%

His contributions= $16,000

Arthur starts investing at age 27.

He invests $2,000/year for 39 years.

Avg. rate of return: 12%

His contributions= $78,000

Even though Arthur invested 23 more years than Ben….Ben has more in his account at

age 65… all because of compounding interest!

Fly - Fight - Win

Retirement savings and investment plan for Uniformed military members serving on active duty, and members of the Ready Reserve or National Guard of each service in any pay status.

Contributions are pre or post-tax dollars then taxed at withdrawal/distribution at current tax rate (tax-deferred).

Traditional TSP vs. Roth TSP

Can contribute to both Traditional & Roth

Traditional contribution limit is $6,000

Roth contribution limit in 2016 is $18,000 ($53,000 if in a combat zone)

Number of options available upon separation/retirement: leaving money in TSP, partial/full withdrawal, purchase an annuity, or a combination.

Account can be accessed penalty-free at age 59 1/2

Thrift Savings Plan: www.tsp.gov

Fly - Fight - Win

Thrift Savings Plan: www.tsp.gov

Fly - Fight - Win

Traditional vs. Roth TSP

The Treatment of… Traditional TSP Roth TSP

Contributions Pre-tax After-tax1

Your PaycheckTaxes are deferred*, so less money is

taken out of your paycheck.

Taxes are paid up front*, so more

money comes out of your paycheck.

Transfers InTransfers allowed from eligible

employer plans and traditional IRAs

Transfers allowed from Roth 401(k)s,

Roth 403(b)s, and Roth 457(b)s

Transfers OutTransfers allowed to eligible employer

plans, traditional IRAs, and Roth IRAs2

Transfers allowed to Roth 401(k)s,

Roth 403(b)s, Roth 457(b)s, and Roth

IRAs3

Withdrawals Taxable when withdrawn

Tax-free earnings if five years have

passed since January 1 of the year you

made your first Roth contribution, AND

you are age 59½ or older, permanently

disabled, or deceased

Fly - Fight - Win

The Benefit of Pre-Tax Investing

Regular Savings

Basic pay $18,118

-Tax @15% $ 2,718 =

$ 15,400

Invest 8% $ 1,449

Remainder $ 13,951

TSP Savings

Basic pay $18,118

Invest 8% $ 1,449 =

$16,669

-Tax @15% $ 2,500

Remainder $14,169

$218 more in your pocket!!

Based on E-2 with less than 2 yrs service, investing 8% in TSP

Fly - Fight - Win

Thrift Savings Plan: www.tsp.gov

Contribute in 1% increments up to 100% of your base pay

Add 1-100% of any special, bonus or incentive pay

IRS elective deferral limit for 2016 is $18,000

Six investment funds:

G Fund

Government Security Investment Fund

When you first start investing in TSP, your contributions will default to the G fund.

Fly - Fight - Win

F Fund

Fixed Income Index

Investment Fund

Tracks Barclays Capital US

Aggregate Bond index

Thrift Savings Plan: www.tsp.gov

C Fund

Common Stock Index

Investment Fund

Tracks S&P 500

(Large/medium sized

companies)

Fly - Fight - Win

S Fund

Small Capitalization Stock Index Investment Fund

Tracks DOW Jones (small/medium sizes companies)

Thrift Savings Plan: www.tsp.gov

I Fund

International Stock Index Investment Fund

Tracks Morgan Stanley Capital Int’l EAFE Index

Fly - Fight - Win

L Funds (Life Cycle Funds)

Professionally determined investment mixes

Thrift Savings Plan: www.tsp.gov

Fly - Fight - Win

Savings Deposit Program

Total of $10,000 may be deposited during each deployment and

will earn 10% interest annually.

Must be a SDP-eligible combat zone. Must be receiving Hostile

Fire Pay.

Deposits may be made in cash, by check, or through allotment.

Once started, allotments may be increased/decreased as your

financial situation changes. Your allotment will stop upon your

departure from the combat zone.

Will continue earning interest for 90 days upon return.

Money can be withdrawn via request through MyPay.

Contact Accounting & Finance for more information.

Fly - Fight - Win

Educate Yourself

Library

Internet

Comparison shop for investment companies

Compare advertised rates of return to the average and

benchmark for that category

Beware of investment and insurance scams

Fly - Fight - Win

Practical Tips

Establish emergency fund first.

$1,000

3-6 months of living expenses

Use allotments or direct-invest.

Pay yourself first!

Many companies allow you to invest $50/month.

Plan to save/invest a realistic amount (10% is the goal).

Fly - Fight - Win

Easy Street!

Fly - Fight - Win 64

Saving & Investment Basics

Questions?

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Headquarters U.S. Air Force

Airman & FamilyReadiness CenterFTAC Presentation

Banking

Fly - Fight - Win

Banks vs. Credit Unions

Credit Unions:

• Democratically controlled by

members

• Not for profit

• Insured by the National Credit

Union Administration

• May offer lower-cost services and

higher interest rates on savings

Banks:

• Generally run by a group of

investors with capital

• For profit

• Federally insured by the Federal

Deposit Insurance Corporation

(FDIC)

• May offer greater accessibility and

a wider range of services

Fly - Fight - Win

Choosing a Financial Institution:

What do they offer?

Checking & Savings Accounts

Credit cards/debit cards

Lines of credit

Personal, business, and auto loans

Mortgages

Online or mobile banking

Automatic bill pay

International banking

Financial planning

Investment management

Health, home and car insurance

Retirement programs

Fly - Fight - Win

And what about the fees?

Monthly Service Charge

Charge per Check

Insufficient Funds

Overdraft Protection: (Median Fee= $34 for each transaction while in overdraft status)

The Consumer Financial Protection Bureau estimates that overdraft and non-sufficient fund fees represent 60% or more of consumer checking account fee income.

ATM Use- some financial institutions reimburse you for ATM fees

International Transaction Fees

Fly - Fight - Win 71

Banking

Questions?

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Headquarters U.S. Air Force

Credit and Debt

Management

Airman & FamilyReadiness CenterFTAC Presentation

Fly - Fight - Win

Credit Defined

• Credit vs. Debt

• Benefits of good credit:

• keep/obtain a security clearance

• obtain lower payments and interest rates on credit

cards/loans

• buy a home, a car, or just about any “high” ticket item

on credit

• borrow money quickly to cope with an emergency

Fly - Fight - Win

Credit can be used:

to purchase items today that you couldn’t normally afford and

spread the cost over time

to make high cost purchases easier and quicker to obtain

to conveniently pay for items

to obtain frequent flyer miles, points, etc… for “free” items or

cash rebates

to build upon existing credit by making on-time monthly

payments

Why Use Credit?

Fly - Fight - Win

Provides long term

or future value

“Worthwhile” Debt

Fly - Fight - Win

Food

Clothing

CDs / DVDs

“Entertainment”

Miscellaneous stuff

Items of

temporary value

“Not so Worthwhile” Debt

Fly - Fight - Win

Open checking/savings account

Secured credit card

Use Military STAR or Club Card wisely, then apply for a

national credit card.

Use a credit card for small amounts, and pay it off each

month to build your credit history.

Obtain a small signature loan, put money in savings and

make payments as required.

Establishing Credit

Fly - Fight - Win

Choose & Use Credit Wisely

Know the interest rates and fees:

Purchases

Cash advances

Transfers from other cards

Penalty Fees

What is your current balance and limit?

What is the minimum payment?

When is your payment due?

Make payments on-time, every time!!!

Fly - Fight - Win

Calculate Your Monthly Interest Charges

1. Divide your APR by 12 months. This gives you a monthly percentage

rate.

APR of 18%: 18% ÷ 12 months = 1.5%

2. Multiply your balance by this monthly interest rate. The result is your

interest charge.

On a balance of $500, your interest charge would be $500 x .015 =

$7.50

3. Add the interest charge to your balance to determine your new balance.

So, your new balance would be: $500 + $7.50 = $507.50

Next month payment calculation $507.50 x .015 = $7.61 so

$507.50 + $7.61 = $515.11

Fly - Fight - Win

Ensure debt doesn’t exceed 15% of monthly income

Shop around for credit- look for low interest rates, no

annual fees, and benefits. (www.bankrate.com)

Never lend credit cards to anyone.

Check credit report for FREE at

www.annualcreditreport.com

Tips for Avoiding Credit Pitfalls

Fly - Fight - Win

Track your

spending…

purchases

can add up

fast!

Save your

receipts and

report

problems if

needed.

Pay more

than the

minimum

amount.

More Tips…

Fly - Fight - Win

Truth in Lending Act:

Requires creditors to disclose, in writing, the following:

Annual Percentage Rate (e.g. cost of the credit

expressed as an annual % of the original amount of credit

provided)

Terms of the loan

True costs to the borrower

Understanding Terms & Conditions

Associated With Credit

Fly - Fight - Win

Revolving credit

Credit cards

Installment credit

Car loans

Mortgage

Types of Credit

Fly - Fight - Win

Credit Cards vs. Debit Cards

Credit Cards

Covered by the Truth

in Lending Act

Liability limit = $50

(if fraudulently used)

Right not to pay

disputed charges

Debit Cards

Covered by Electronic

Funds Transfer Act

Liability Limit = $50 (if

reported w/in 2 business

days) or $500 or

everything in account +

line of credit (if fail to

report w/in 60 days)

Dispute procedures in

place

Fly - Fight - Win

Stored Value Cards

Examples: Gift cards, phone cards, etc.

NOT a debit card

NOT tied to a checking account

NOT covered by any federal law or regulation

Dispute procedures established by card issuer

Liability limit = value stored on card

BLUF: Lose your card = lose your money

Fly - Fight - Win

Loan Amount $1,000

Interest Rate 19.8%

Monthly Payment 3% of balance ($30)

# Years to Pay 4 years, 1 month

Total Finance Charge $463.84

Visit http://www.powerpay.org

Cost of Credit:

Fly - Fight - Win

Monthly Minimum Payments

Take Home Pay

Debt Divided by Income= Debt Income Ratio

(DIR)

Example: $250 debt payments = 25% DIR

for $1000 take home pay

When is it too much?

Fly - Fight - Win

0 - 5%: Doing well

10 - 15%: Manageable

20% +: Go on a “credit diet”

28%: Maximum for a mortgage

36%: Combined maximum for

consumer credit debt and

a mortgage

When is it too much? (Cont’d)

Fly - Fight - Win

Your credit report contains:

Personal info

Employer info

7–10 years history

Inquiries (“soft /hard”)

Negative indicators:

Bankruptcy

Charge-off and

collection info

Credit Reports/Scores

http://www.experian.com/credit_report_basics/pdf/samplecreditreport.pdf

Fly - Fight - Win

Credit Scores

• 65% based upon

payment history

and amount owed

• Pay on time

• Keep balances well

below credit limit (not

more than 10% of

available credit)

• Check your report

and correct errors

• Influences what

credit products will

be available to you

and the cost of

those products

• Lower scores =

overall higher cost;

or even inability to

obtain credit

• Three digit number

generated by a

mathematical

algorithm based on

information in your

credit report

• Fair Isaac & Co.

(FICO) – Most

common

• FICO Range : 300 -

850

What is a

Credit

Score?

Why Should

I Care?

How Do I

Influence

My Score?

Fly - Fight - Win

10%10%

15%

30%35%

Payment History Outstanding Debt Length of Credit

New Credit Types of Credit

Credit Score Recipe

Fly - Fight - Win

$406.29$372.29

$339.95$324.42

$309.32 $294.66

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

500-559 560-619 620-674 675-699 700-719 720-850

Credit (FICO) Score

$16,000 Vehicle Loan

Ca

r P

aym

en

tCredit’s Impact

Fly - Fight - Win

$395,000

$353,000

$308,000

$250,000

$227,000 $217,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

500-559 560-619 620-674 675-699 700-719 720-850

Credit (FICO) Score

$200,000 Home Loan

To

tal In

tere

st

Pa

id

Credit’s Impact

Fly - Fight - Win

Pay on time…every time!

Pay more than the minimum

Limit yourself to 1 credit card

Keep your debt level low

Don’t “max” out your credit card

Check your myFICO

How to Improve Your Credit Score

Fly - Fight - Win

FICO Score

Fly - Fight - Win

Security Clearances

Credit and Debt Management

Fly - Fight - Win

Security Clearance

Financial Considerations

Failure or inability to live within one's means,

satisfy debts, and meet financial obligations

may indicate poor self-control, lack of judgment,

or unwillingness to abide by rules and regulations,

all of which can raise questions about an individual's

reliability, trustworthiness and ability to protect

classified information.

An individual who is financially overextended is

at risk of having to engage in illegal acts to

generate funds.

DoD Directive 5200 2-R Appendix 8

Fly - Fight - Win

Inability or unwillingness to satisfy debts

Irresponsible spending

History of not meeting financial obligations

Deceptive or illegal financial practices (theft, fraud, income tax evasion)

Financial problems linked to drug abuse, alcoholism, and gambling problems

Unexplained affluence

Credit Management and

Security Clearances

Fly - Fight - Win

Accrual voucher and use split disbursement

Know what is authorized:

Meals

Lodging

Rental car

Cash advances for official expenses only

Airlines tickets for official travel

What about your Government ??

Fly - Fight - Win

Lower interest rates on debts incurred prior to

joining the military to 6% (w/exceptions)

Exempting the military member from paying property

taxes on vehicles (w/exceptions)

Exempting the military member from paying state

taxes on vehicles (w/exception)

Servicemember’s Relief Act

Fly - Fight - Win

Talk to Creditors

Visit Power Pay (www.powerpay.org)

Contact your Airman & Family Readiness Center

Contact the Legal Office

Contact a Consumer Credit Counseling Service

Credit Problems?

Fly - Fight - Win 111

Questions?

Credit and Debt Management

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Headquarters U.S. Air Force

Understanding the

“Car Buying Game”

Airman & FamilyReadiness Center

FTAC Presentation

Fly - Fight - Win

1Step

Shopping with

Confidence

Fly - Fight - Win

Consider Your Needs

WANTs vs. NEEDS

What’s important to you?

1Step

Nationality of origin

Body size – sub-compact, compact, midsize, etc.

Body style – 2-door, 4-door, convertible, SUV, etc.

Engine size

Possibly higher insurance rates

Transmission – manual, automatic

Drive train – 2-wheel drive, 4-wheel drive

Reliability

Style

Performance

Utility

Safety

Handling

Economy

Price

Image

Fly - Fight - Win

What equipment options do you want?

Air conditioning

Power windows

Power locks

Tilt steering

Cruise control

Sunroof

Sound system

Determine approx. monthly costs for payment, insurance,

gas, and maintenance. Make those payments to yourself

(savings acct.) for 1-3 months. Can you afford it?

Ad Valorem Tax

1Step

Consider Your Needs and Budget

Fly - Fight - Win

Where and When to Shop

Where:

“Auto Malls”

Neighborhood dealerships

Automobile and truck shows

Used car marts

Neighborhood used car lots

Private parties

Public and Police auctions

When:

Salesmen have weekend quotas to meet…

Shop on weekdays or weekday evenings

Especially the last few days of the month

1Step

Fly - Fight - Win

Your Car Shopping Goals

On your first shopping trip:

See which cars fit your needs and budget-

Can accomplish these goals by following a step-by-step

shopping game plan…

1Step

Fly - Fight - Win

Your Car Shopping Game Plan

Greet the salesman.

Tell him exactly what you want to see.

Look at the factory window sticker.

Inquire about other versions of the same car (DX, SE, LX).

Sit inside the car.

Test drive the car.

Don’t baby the car; drive like you normally would.

After the drive, ask for a brochure.

Ask more questions.

Thank the salesman.

Leave!1Step

Fly - Fight - Win

Used Car Shopping Tips

Problem - Never quite sure what you are getting.

Useful tips:

Examine body of vehicle

Examine interior

Look under hood

Look under vehicle

Check odometer

Check the car’s VIN

Use CARFAX or another method to checkout the car’s history.

Have your mechanic inspect vehicle before you buy. If the seller

won’t allow this, be suspicious.

1Step

Fly - Fight - Win

Choosing

the

Right Car2Step

Fly - Fight - Win

Clear Up Your Confusion

Many of the new and late-model vehicles are alike.

The perfect car does not exist.

This is not a life-or-death situation.

You may need to re-examine your needs.

You may need to re-examine your budget.

2Step

Fly - Fight - Win

Do Some Additional Research

Manufacturer’s Brochures

Auto and Consumer Magazines

US Government Safety Publications and Websites

Auto Manufacturers’ Websites

2Step

Fly - Fight - Win

Making the Big Decision

Once satisfied with shopping and research…

Narrow down choices:

Which car is the right one for you?

The car that’s right for you is the one that fits

your needs and your spending plan…

And feels right!

2Step

Fly - Fight - Win

Preparing

to

Buy3Step

Fly - Fight - Win

Determining the Invoice Price

New Cars and Trucks

www.edmunds.com

Used Cars and Trucks

www.kbb.com

3Step

Fly - Fight - Win

Arranging Your

Automobile Insurance

Prior to removing car from lot, you will have to show

proof of insurance.

Call current company for quote.

Shop around and compare.

Insurance is required by law!

3Step

Fly - Fight - Win

Selling Your Present Car

Ways to Sell Your Car:

Sell the car on your own

Check Kelley Blue Book

Let a consignment dealer sell it for you

Sell your car directly to a used car lot

Trade it in to the dealership

Donate your car to charity

Sell it on EBay

3Step

Fly - Fight - Win

Arranging Your Financing

Check your credit report.

How are you going to pay for the vehicle?

Cash

Bank financing

Credit Union financing

Online financing

Dealership financing

Compare interest rates and loan terms.

Choose the financing deal that’s best for you- see if

companies will compete for your business.3Step

Fly - Fight - Win

Interest Rates and Loan Terms

Fly - Fight - Win

Arranging Your Down Payment

Unless you receive 100% financing from your bank, you will be

required to pay a down payment.

Amount depends on selling price of vehicle

Three sources:

Cash

Factory rebates

Your trade-in

If you are a first-time buyer or have questionable credit,

you may be required to put down a larger down-payment.

Ex./15-20% 3Step

Fly - Fight - Win

Lease or Buy?

8 Reasons Not to Lease:

Penalty for excessive mileage

Need good credit to lease

Required to maintain the car as if you own it

Quoted lease payments may not include sales tax

May be a large return fee at the end of the lease

Difficult to terminate lease early

Payments may not be lower than if you bought the car

3 Reasons to Consider Leasing:

You know you will keep the car for ONLY 2-3 years

Car manufacturer is offering a “lease special”

Accountant advises you to lease versus buy 3Step

Fly - Fight - Win

Buying Like

an Expert

4Step

Fly - Fight - Win

Getting Ready to Go

What to bring:

The invoice price for the car you are interested in

Checkbook and/or cash for down payment

Loan pre-approval forms

Auto insurance information

Driver’s license

Social security card

Title and registration, if you are trading in a car

Who to Bring:

If vehicle will be jointly-owned, bring spouse

Friend who is not emotionally involved in the situation

4Step

Fly - Fight - Win

How to Keep Your Sanity

Think twice before you buy.

Before you “seal-the-deal,” examine everything with a fine-

tooth comb.

Vehicle’s exterior – dings, scratches, dents

Vehicle’s interior – rips and tears in fabric, scratches

Ensure vehicle has all features you are paying for

Size of engine

Interior/Exterior equipment

Test drive the vehicle

Read everything PRIOR to signing anything!

4Step

Fly - Fight - Win

4Step

FIRST Rule of Negotiating

Never appear anxious, worried, or desperate.

Remain calm, casual, and willing to walk away at any time.

SECOND Rule of Negotiating

Never negotiate down from the sticker price.

Always negotiate UP from the invoice price (new cars)

or wholesale price (used cars).

Negotiating the Selling Price

Fly - Fight - Win

Negotiating the Selling Price

1. Salesman will ask basic questions.

-- Tries to make the negotiating start out friendly

2. He will want to discuss monthly payments.

- Never negotiate based on monthly payments.

-- “I’m not interested in discussing monthly payments.

I only want to talk about the selling price of the vehicle.”

--- Negotiate up from dealer’s cost.

3. How will you be paying for the vehicle?

- “I only want to talk about the selling price right now.

We can discuss finances later.”

4Step

Fly - Fight - Win

4Step

6. Once you’ve made an offer, be quiet!

- The salesman will probably insist your offer is too low.

THIRD Rule of Negotiating

Whoever speaks first after an offer is made

is in the weaker negotiating position.

7. The salesman will try to get you to raise your bid.

FOURTH Rule of Negotiating

Never negotiate against yourself.

Never raise your own bid until

they make a counteroffer.

Negotiating the Selling Price

Fly - Fight - Win

4Step

8. Let the games begin!

- The salesman will walk over to the Sales Manager’s office

-- Sit back and relax.

--- Sooner or later, the salesman will return.

---- He and/or his Sales Manager will present their

counteroffer.

---- Sit and think.

---- They will probably speak first to break the tension.

---- At the appropriate moment, show your flexibility

by raising your bid.

FIFTH Rule of Negotiating

Always raise your offer in small increments-

$50 - $100 at a time.

Negotiating the Selling Price

Fly - Fight - Win

4Step

9. The game will go on…

-- They will shake their heads, try all sorts of lines, theatrics,

and ploys to get you to spend more than you have planned.

10. Eventually, your offer will rise to your pre-set limit. When it does,

don’t budge!

11. If they won’t sell at YOUR price…

- Thank them and leave.

-- If they WILL sell at YOUR price…

Negotiating the Selling Price

Fly - Fight - Win

Closing the Deal

Negotiations finally end when:

They are convinced you absolutely cannot or will not go any

higher in your price.

They know they are making a profit…

even a minimal one.

With negotiations complete, the salesman leads you into the

Business Office.

4Step

Fly - Fight - Win

Inside the Business Office

Offers you “extras”…

Extended warranty

Paint and fabric protection

Rust-proofing and undercoating

Alarm system

Window tinting

Life, health, disability insurance

Remember…the Business Manager is another salesperson working on commission.

Formalities of signing forms and agreements-

Financing, interest rate, other details explained…read fine print! 4Step

Fly - Fight - Win

THOUGHT TO REMEMBER…

Car buying is a

process…

not an event!!!

Fly - Fight - Win 150

Understanding the

“Car Buying Game”

Questions?

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Headquarters U.S. Air Force

Base Specific

Issues

Airman & Family Readiness CenterFTAC Presentation

Fly - Fight - Win

Base Specific Issues

PCSing

Expenses / Expectations

Detrimental Business Practices

State or Country Liability Laws

Gap Insurance

Fly - Fight - Win

Contact local A&FRC for relocation resources

Establish or transfer banking

Notify creditors of address change

Transfer auto insurance coverage

Research the area (schools, housing, commute)

Ask questions about local community resources

Letter of reference for utility companies (discounts)

PCSing

Fly - Fight - Win

Payday Loans

Rent-To-Own

Title Loans

Zero Down / Zero Payments

Take Home Today!!

High Interest / High Pressure Auto Dealers

Pawn Shops

Tax Refund Anticipation Loans

Loan Consolidation

Detrimental Business Practices

Fly - Fight - Win

Unfair/abusive loan terms

Aggressive sales tactics

Take advantage of borrowers’ lack

of understanding

Complicated transactions

Deception

Also available online

Predatory Lending

Fly - Fight - Win

Borrower writes a post-dated check or provides bank account info to

cover amount borrowed.

If not paid off, borrower continues to pay “fee” indefinitely until entire

amount borrowed is paid. Fee NEVER applies to the loan.

How does Pay Day lending work?

Fly - Fight - Win

Fees equal 400% APR and higher

Capped at 36% for military and their dependents as of

Oct 2007 (also includes other stipulations for military

personnel)

75% of payday customers cannot pay back the loan in

two weeks

Payday lenders make it easy to borrow, but hard to pay

off

Problems w/ Pay Day Lending

Fly - Fight - Win

Negotiating new payment plan with creditors.

Personal/consumer financial management counseling:

Airman & Family Readiness Center

Military One Source: http://www.militaryonesource.mil/

Borrowing from family.

Emergency assistance programs: Air Force Aid Society

Cash advances on credit cards (not the best choice but better than

predatory lenders)

Small consumer loans

Alternatives to Pay Day Lending

Fly - Fight - Win

Sources of Help

• Reduce interest rates & stop late and over the limit

fees

• Consolidate your unsecured debt into one easy

monthly payment

• Pay off your debt in most cases within 5 years

• Develop a workable budget!

Fly - Fight - Win

Other

“Things”

to Avoid…

Credit and Debt Management

Fly - Fight - Win

Car Title Loans

“Get Cash for a

Car Title Loan

Today!”

“Keep Your

Vehicle – No

Credit Checks –

Easy Online

Form – Get Cash

in 15 Minutes!”

“No Proof of

Employment or

Income

Required!”

Example:

Borrow $500 for 30 days at

25% per month (e.g. 300% APR)

= $125 interest!

Second month pmt: $625 x .25=$156.25

so $625 + $156.25 = $781.25

Fly - Fight - Win

Tax Refund Anticipation Loans

No longer permitted, but replaced with

similar products.

Short-term cash advances against a

customer's anticipated income tax refund.

The interest can be the equivalent of an

annual percentage rate (APR) of 70% or

more.

Example: On a refund of about $3,300,

you might pay over $300 for tax

preparation services and loan fees for just

a one or two-week loan.

For military members, capped at 36%

APR.

Fly - Fight - Win

Renting will cost $1,439.76!

Rent-to-Own Contracts

Businesses charge a weekly or monthly rental for a

stated period of time on a piece of property that is

eventually owned by the consumer.

Late fees are exorbitant!

40" Smart 1080P LED TV

$59.99/mo | 24-mo lease

Everyday low price:

$899.99

Fly - Fight - Win

Pyramid Schemes

Participants attempt to make money solely by recruiting new

participants into a “program” (appearing to have

legitimate products or services to sell).

These schemes promise sky-high returns in a short period of time for

doing nothing other than handing over your money and getting others

to do the same.

Eventually the pyramid will collapse.

Example: http://www.investigationdiscovery.com/famous-

cases/videos/the-madoff-mystery-the-ponzi-scheme.htm

Fly - Fight - Win

Affinity Fraud

Affinity fraud occurs when an

individual takes advantage of a

particular group, by claiming

(either directly or indirectly) to be

part of that group.

They normally sell investments

and/or insurance policies that

are unnecessary or poor

choices.

http://www.businessinsider.com/

sec-shuts-down-marines-hedge-

fund-2013-8

Fly - Fight - Win

FTC Survey for 2011:

Shows an estimated 25.6 million Americans

fell victim to fraud…most found online…

Let’s take a closer look…

On-Line Scams

Fly - Fight - Win

• Accounts for half of all complaints

registered with the FBI!

The setup: Send in money for a product

and get nothing in return.

What actually happens: You never get

the product promised or the product

doesn’t match the promise.

The risk: You get ripped off and lose

money.

Auction Fraud

Fly - Fight - Win

Phishing

1 in 392 emails contain a phishing attack!

The setup: You receive an e-mail that looks like it came from a bank

warning you about identity theft.

What actually happens: The e-mail looks real and may actually be the

real website. However, the information requested by you is entered into

a bogus website by popping up a window over the real site to capture

your personal info.

The risk: Your account information is sold to criminals

Fly - Fight - Win

----- Original Message -----

From: Customer Support

To:

Sent: Friday, May 13, 2005 6:05 PM

Subject: Spam Alert: Security Alert!

Dear Customer,

We recently noticed one or more attempts to log in to your WellsFargo account from a foreign IP address. If you recently

accessed your account while traveling, the unusual log in attempts may have been initiated by you.

We would like to ensure that your account was not accessed by an unauthorized third party. Because protecting the

security of your account is our primary concern. However, failure to change your password, will result in account

suspension.

To change your password click on the following link, sign on,

you will be automatically redirected to change your password:

https://online.wellsfargo.com/signon?SIGNON_XPC=1010

Please do not reply to this e-mail. Mail sent to this address cannot be answered.

For assistance, log in to your WellsFargo account and choose the "Help" link in

the footer of any page.

Email ID PD469256469116177300

An

actual phishing

E-mail sent to

a customer. Wells

Fargo confirmed

it was fake!

Fly - Fight - Win

The TOP 5 Online

Scams Revealed

Consumer

Beware!

Congratulations!You’ve Won an Xbox

(IPod, TV, etc…)

The setup: You get an e-mail telling you that you won something really cool.

All you need to do is visit XYZ website and provide your debit card #

and PIN to cover “shipping and handling”

What actually happens: The item never arrives and a few months later,

mystery charges show up on your debit card.

The risk: Identity theft and lost money.

Fly - Fight - Win

Identity

Theft

Credit and Debt Management

Fly - Fight - Win

Identity Theft

Fly - Fight - Win

Security Freeze

Anyone can opt to have their credit files frozen for a

nominal fee.

If victim of ID Theft – no charge w/ police report

If the files are frozen, thieves won’t be able to get any new

credit.

In order to apply for credit, you must “temporarily” lift your

freeze. Lift fee must be paid.

http://consumersunion.org/pdf/SecurityFreeze-Consider.pdf

Fly - Fight - Win

State Lemon Law

Vehicle insurance coverage minimums:

Georgia minimum liability limits: Bodily Injury:

$25,000 per person, $50,000 per occurrence,

and Property Damage liability of $25,000 per

occurrence.

Apartment/house rental contracts (military clauses)

State or Country Liability Laws

Fly - Fight - Win

Insurance coverage you can purchase to pay the

difference between what is owed on a vehicle and the

amount received from the insurance company if totaled.

Example: John’s car is worth $15,000. John’s car is

totaled or stolen. He still owes $20,000 on his vehicle

loan. John’s car insurance policy will reimburse him with

$15,000. If John has GAP insurance, the extra $5,000 he

owes on his loan will be covered.

Gap Insurance

Fly - Fight - Win

Deceptive Insurance and

Financial Reporting Agencies

BBB Military Line

http://www.bbb.org/council/programs-

services/bbb-military-line/

State Insurance Regulatory Agency

www.naic.org/state_web_map.htm

Federal Trade Commission/OSA

www.consumerfinance.gov/servicemembers/

Federal Deposit Insurance Corporation

www.fdic.gov

Fly - Fight - Win 182

Base Specific Issues

Questions?

I n t e g r i t y - S e r v i c e - E x c e l l e n c e

Headquarters U.S. Air Force

Financial

Resources

Airman & FamilyReadiness CenterFTAC Presentation

Fly - Fight - Win

Financial Counseling:

A&FRC Personal Financial Readiness Program: offers

information, education, and personal financial counseling to

help individuals and families maintain financial readiness.

One-on-one counseling

Briefings, Workshops/Seminars

Information/Referral

Military OneSource- www.militaryonesource.mil

Base Financial Institutions: Armed Forces Bank and

SEFCU

Financial Resources

Fly - Fight - Win

Air Force Aid Society (AFAS)

The AFAS is the official charity of the USAF.

The Society has promoted the Air Force mission by

providing worldwide emergency assistance,

sponsoring education assistance programs and

offering a variety of base community enhancement

programs that improve the quality of life for Airmen

& their families

Fly - Fight - Win

AFAS www.afas.org

Provides interest free loans or grants for emergencies

FALCON Loans

Spouse/Children education grants

HAP Arnold Grant

Fly - Fight - Win

AFAS Community Support

Programs

Bundles for Babies

Child Care for PCS

Child Care for Volunteers

Heart Link

Give Parents A Break

Car Care Because We Care

Respite Care

Spouse Employment Program

Fly - Fight - Win

Airman & Family Readiness Center

Bldg. 400

257-3333

Our Programs:

Personal Financial Readiness

Air Force Aid Society

Readiness

Relocation

EFMP

Personal and Work Life

Key Spouse

Volunteer and Employment

Wounded Warrior

Transition Assistance

Fly - Fight - Win 190

Thank You!

Questions?