1

Why This Matters

• Studies show that, on average, military families have higher amounts
of debt and fewer assets than civilians
• Challenges of military life can affect servicemembers’ finances:
o Frequent transition and changes
o Many servicemembers have little financial experience
o Decisions have long-term effects
• Getting the know-how is key to making smart financial decisions

2
3
Personal Financial Managers (PFMs)
• PFMs provide
o Confidential help
o Counseling
o Free classes
o Emergency financial help
o Free FICO credit score
• To find a PFM
o Visit MilitaryInstallations.dod.mil and select
“Personal Financial Management Services”
o Call Military OneSource at 1-800-342-9647

4
Legal Assistance Offices
• Gives you free legal counsel
• Servicemember Civil Relief Act
o Gives you reduced interest rates
o Can postpone negative actions
o Lets you terminate contracts or leases
o Protects your life insurance
• To find legal assistance
o Visit MilitaryInstallations.dod.mil and select “Legal Services/JAG”

5
Budgeting
• Your spend plan
• Important when life is changing
• Create your budget
o Add up total what you spend now
o Add up total the money you bring in now
o Compare the numbers
 Earn more than you spend? Start building an emergency fund
 Spend more than you earn? Look for ways to cut costs

6
Money Management & Apps
• Apps are offered by banks or credit unions
• Maximize their use
o Understand tools
o Be secure
o Be aware of costs
o Know the limits of peer-to-peer payments

7
Shopping Smart
• Use military resources to save money
o Commissaries
o Exchanges
• Search online for credible information
• Use apps to get the best deals

8
Using Allotments
• Payments deducted before you receive your paycheck
o Can be used to pay for things like life insurance or military loans
o Can not be used to pay for things like cars or furniture
• Two types
o Discretionary
o Non-discretionary
• PFM can help with
o Eligibility
o Fitting allotments into budget
o Planning for financial goals

9
Buying a Phone
• Do research and consider
your options
o Features • Make your purchase
o Number of people on your plan o Shop around
o Coverage maps o Ask about discounts
o Consider prepaid plans
o Read the contract

10
Buying a Phone
• Know your rights

• Ask about cancellation policies

11
Renting an Apartment or House
• Plan ahead • When you find a place
o Know your budget o Understand the lease
o Talk to others in the area o Do a walk-through

• Considering a roommate • After you move in

o Verify employment o Buy renters insurance
o Run credit histories o Pay your rent on time
o Talk about finances o Get your landlord’s promises in
writing

12
Buying a Home
• Pros and cons
o Renting – you can move at a moment’s notice
o Buying – you owe mortgage payments until you sell, even if you move
• If you buy
o Home = 2 to 2.5 times annual income
o Mortgage = 50-80 percent of home’s value at most
o Monthly housing costs = no more than 35 percent of income
• Programs to help
o VA Home Loans program
o SCRA

13
Buying a Car
• Research
o Decide what you can afford
o Determine worth of your current car
o Decide how you will pay
o Do research before financing
• Shop
o Choose the car and comparison shop
• Buy
o Go to a dealer at the end of the month
o Focus on the “out the door” price
o Watch for add-ons or extra fees
o Lock in the total price first
o Remember – you can walk away

14
Buying a Used Car
• Find a car
o Decide what you can afford
o Decide how you will pay
o Do research before financing
o Shop around
• Check it out
o Test-drive
o Maintenance record
o Warranty
o Inspection
o Car history
• Buy and enjoy (or walk away)

15
Used Car Buyers Guide and Warranties
• Save you money and headaches
• Buyers Guide tells you if the car:
o Is sold “as-is”
o Is sold with an implied warranty
o Has a warranty and if it’s full or partial
o Is under the manufacturer’s warranty
o Has a service contract available
• Compare and negotiate
• Ask for and keep documents

16
Vehicle Financing
• Decide what you can afford
• Check with your bank or credit union first
• See if the dealer can beat their rate
o Special rate
o Credit insurance
• Compare loans based on APR
• Choose a loan
• Closely review paperwork

17
18
Choosing a College or Technical School
• Research
o What type of education do you need?
o What kind of school offers those courses?
o Use GI Bill Comparison Tool - Vets.gov/gi-bill-comparison-tool
• Experience the school
• Get credit for your training
• Review enrollment contract

19
Paying for Your Education
• While in the service
o Tuition Assistance
o TA Decide - Dodmou.com/TADECIDE
o Voluntary Education Programs
o GI Bills
• As you leave the service
o Transition Assistance Program
o State veterans’ benefits
o VA’s GI Bill Comparison Tool – Vets.gov/gi-bill-comparison-tool
o Scholarship info on Military OneSource

20
Paying for Your Education
• Student loan basics
o Supplement GI Bill benefits
o Lifetime cap
o Must repay even if you don’t finish
o Federal loans: better rates than private loans
o StudentAid.gov
• Before you commit
o What’s the interest rate and the total cost?
o When repayment begin and how often will you pay?
o How long do you have to repay?

21
Getting a High School Equivalency Diploma
• Online diploma tests are scams
• Legitimate tests
o Four options
o In-person, supervised
• Find out more
o Check out your state’s department of education
o Community colleges
• Other options
o Taking classes
o National External Diploma Program

22
Avoiding Job Hunting Scams
• To find a job
o Military job fairs
o Feds Hire Vets – FedsHireVets.gov
o CareerOneStop – CareerOneStop.org
o USA Jobs – USAjobs.gov
o Installation education office
• Using a job search service
o No legitimate company will charge you to guarantee a job
o Get promises in writing
o Insist on paperwork in advance
o Check out any jobs they find

23
Being Your Own Boss in a Franchise
• Do your homework
o How long is the agreement?
o Do your skills align?
o Will you achieve your goals?
• Get advice
o Talk to a lawyer and accountant
• Review your paperwork
o Should receive a Franchise Disclosure Document
o Review state laws

24
Multilevel Marketing
• Know the difference
o Multilevel marketing
o Pyramid scheme
• Do your research
o Get details in writing
o Talk to distributors
o Search online
o Look for signs: Do distributors sell most of their product to other distributors?
Do they make money from recruiting others?

25
26
Being Smart About Using Credit Cards
• Know the risks
o Carrying a balance
o Missing payments
• Compare cards
o Annual and other fees
o APR
o Yearly interest
o Grace period
o Incentives
• Monthly payments

27
Prepaid Debit Cards
• Pros
o Don’t need a bank account or strong credit
o Some may have overdraft features
• Cons
o Doesn’t help with credit history
o High fees
• Shop around
• Compare to bank or credit union cards
• Most prepaid cards don’t offer consumer protections

28
Your Credit History
• Tells businesses
o How much you owe
o How you pay your bills
• Influences jobs, loans, security clearance and more
• Know your story
o Get free credit report – AnnualCreditReport.com
o Review and fix any issues
o Your PFM can help you get your free credit score

29
Improving Your Credit
• No credit history
o Pay bills on time
o Consider a secured credit card
• Bad credit history
o Explore interest forgiveness
o Pay down cards
o Don’t get new cards
o Keep old accounts open
o Check periodically
o Get help

30
Improving Your Credit
• While deployed
o Plan with your PFM
o Consider using automatic payments
o Delegate access
o Set up an active duty alert
o Research before using credit cards overseas

31
Need Money in a Hurry?
• Payday and car title loans
o Charge extremely high rates
o Should be last resort
• Better alternatives
o Bank or credit union loan
o Credit card
• Get help
o Talk to PFM
o Call Military OneSource – 1-800-342-9647

32
Managing Debt
• To repay debt
o Cut costs, apply savings to debt
o Contact lenders for help
o Consult a certified credit counselor
o Talk to your PFM
• Evaluate a counselor, look at
o Services
o Costs
o Free benefits
o Credentials/licensing

33
Debt Collectors
• If a debt collector contacts you:
o Take notes
o Ask for written notice
o Don’t accept harassment
o Talk to a certified credit counselor
• If you get a summons
o Look at the details
o Work with PFM or legal services
o Show up in court

34
35
Saving
• Build a foundation
o Set goal, timeline
o Use allotments
o Begin small and increase
o Start early
o Avoid high-interest loans, credit card balances
• Save extra while deployed
o Savings Deposit Program
o Combat Zone Tax Exclusion Area
o Re-enlisting in a combat area

36
Choices for Where to Save
• Look for the best deal
o Fees, interest rates
o Convenience
o ATM access
o Mobile banking
o Minimum balance requirements
o Early direct deposit of active duty pay
o Military savings programs
• Contribute to a TSP

37
Investing
• Do your research
o Examine the opportunity
o Check qualifications
o Be clear on fees
• Fraud red flags
o High rate of return, low risk
o Pressure to invest quickly
o “Get rich quick”

38
39
Ways to Avoid Scams
• Beware of people or companies that:
o Ask for money, personal info
o Use recorded sales pitches
o Request payment via wire services, reloadable cards
o Ask you to deposit a check, wire money back
• Stop and check it out
o Search online
o Talk to someone you trust
• The FTC can help
o Free scam alerts
o Report scams

40
Monitoring Your Credit Reports
• Keep an eye on your credit
o Get your report – AnnualCreditReport.com
o Use active duty alerts
o Review your statements
o OPM data breach: check for eligibility

41
Responding to Identity Theft
• Minimize the impact
o Call the companies where you know fraud occurred.
o Visit IdentityTheft.gov
o Place fraud alert
o Get credit report
o Notify your commanding officer

42
Seeing Through Imposter Scams
• Imposter scams
o Appear to come from someone you know
o Pressure you to send money quickly
• Common versions
o Distressed friend/family in need
o IRS call
o “Free” money from government
o Computer virus alert
o Online dating interest requesting money

43
Using Public Wi-Fi
• Public Wi-Fi isn’t always secure
• Encrypt, encrypt, encrypt
• To minimize risks
o Choose secure networks/websites
o Use apps carefully

44
Protecting Your Personal Information
• Use strong passwords
• Choose unique security questions
• Use multi-factor authentication
• Share SSN and account info judiciously
• Beware of imposters
• Lock up, shred sensitive documents
• Info compromised? Visit IdentityTheft.gov

45
Securing Laptops, Phones and Other Devices
• Protect access
o Never leave devices in car
o Carry laptops, tablets in nondescript cases
o On the go? Use hotel safes
o Employ “track your device” tools
o Backup files
• Wipe devices
o Hard reset phones and remove SIM and SD cards
o Use wipe program on laptops

46
47