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!)
“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?
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