fundamentals of financial resources
DESCRIPTION
FUNDAMENTALS OF FINANCIAL RESOURCES. A GUIDE TO CONNECTING SERVICE MEMBERS TO FINANCIAL ASSISTANCE. Kelley Faulk Education & Career Specialist Personal Financial Management Program Manager HQ USMC. Statistics. #1 Reason for clearances being denied or revoked. - PowerPoint PPT PresentationTRANSCRIPT
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FUNDAMENTALS OF FINANCIAL RESOURCES
A GUIDE TO CONNECTING SERVICE MEMBERS TO FINANCIAL ASSISTANCE
Kelley FaulkEducation & Career Specialist
Personal Financial Management Program Manager HQ USMC
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Statistics• #1 Reason for clearances being
denied or revoked.
• #2 Concern behind career concerns.
• Current economy: Housing concerns, student loan defaults, unemployment, downsizing of services
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They protect us so we need to protect them!
• Service members have a steady income which can make them a target.
• Many companies say they want to support our Service member but we need to be careful.
• Be careful even when company representatives say “I use to be in the service, I’m here to help”.
• We need to help them prepare their finances prior to transitioning to the civilian economic environment.
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Question?
Do the services have restrictions on who can teach financial education to the service members and families?
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Who can provide financial education to the service
members?
DoD Instructions 1342.27 and DoD Directive 1344.7 outlines who can teach financial education.
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Question?
Can you list the first financial educators you would send a service member or family member to for financial advice?
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Recommended Areas of Information & Referral
• Personal Financial Management Program (PFMP)• Command Financial Specialists (CFS)• Defense Federal Credit Unions and Banks (On-
Installation Financial Institutions)• Non-profits with Memorandum of
Understanding/Agreement• DOD Partner List
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Personal Financial Management Program
• The Navy, Air Force, Army and Marine Corps have a program called Personal Financial Management Program.o Utilize Personal Financial Educators
- Called PFMs in Marine Corps- Financial educators are required to obtain and
maintain a national recognized certification. - Each branch of service’s Personal Financial
Educator will assist another member of a branch of service.
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Personal Financial Management Program Offers
• One-on-one counseling/coaching• Workshops• Brown Bag Luncheons• Command/Unit Trainings• Training of E-6 (Staff Sergeant-SSgt) and above
(Command Financial Specialists-CFS)• Financial I&R to appropriate agencies
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Command Financial Specialists (CFS)
o The E-6 or above must attend a 1 week financial education training program.
o CFSs then assists the command to establish, organize, administer, and disseminates financial management information.
• Navy and Marine Corps PFM program trains E-6 (Staff Sergeant-SSgt) and above:
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Defense Federal Credit Unions & Banks (On-installation)
On installation Credit Unions and Banks are required to assist in financial education/counseling.
Defense Credit Union Council www.dcuc.org
National Association of Federal Credit Unions www.nafcunet.org
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Service SocietiesAir Force Aid Society (AFAS) www.afas.org
Navy-Marine Corps Relief Society (NMCRS) www.nmcrs.orgArmy Emergency Relief (AER) www.aerhq.org
Coast Guard Mutual Assistance (CGMA) www.cgmahq.orgo Private non-profit organizationso Worldwide emergency assistanceo Education assistance programso Interest-Free loans and grantso Scholarships and interest-free loans for educationo CounselingMilitary One Source http://www.militaryonesource.mil/MOS/f?p=MOS:HOME:0::::
Army Gold-Financial Educationhttp://www.myarmyonesource.com/CommunitiesandMarketplace/FinancialLiteracyGame/default.aspx
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Question?
What is the agreement organizations sign to partner with the DOD/Military Services?
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Memorandum of Understanding/Agreements
• Organizations that have signed a Memorandum of Understanding (MOU) with the Services/DOD.
• Sets an understanding of the terms and conditions of both parties in writing.
• Team with non-profits, benevolent organizations and government agencies.
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SECNAVINST 1740.4• Consumer Counseling Credit Service (CCCS)
SECNAVINST 1740.4.• Each location has their own webpage.• Members of Better Business Bureau (BBB) and
Council of Accreditation (COA).• Assist in credit/debt, bankruptcy, and housing
counseling and financial education.• Member of the National Foundation of Credit
Counseling a Benevolent Organization on DOD’s Partner list.
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Sources if the PFM/CFS can not assist or the service member wants to go off base:
Official Partners with MOUs Benevolent Organizations
Government Agencies
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Official Partners (VIA MOU)• FINRA Investor Education Foundation
www.finrafoundation.org o Credit Reports/Scores
• Council of Better Business Bureaus www.bbb.org/us/military-lineo Company reviews, ratings, data collection, complaint
and dispute resolution.o Financial education, outreach, information, free
consumer guides.• Consumer Federation of America www.consumerfed.org
o Disseminates information on consumer issues.
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Official Partners (VIA MOU)• Military Saves www.militarysaves.org; facebook and twitter
o Social marketing campaign to save for all ages
• Institute of Consumer Financial Education www.financial-education-icfe.orgo Online financial education: budgeting, children & money, credit card tips, credit file correction, identity theft, and quizzes.
• Jump$Start Coalition for Financial Literacy www.jumpstart.orgo National Coalition of organizations for financial literacyo Kindergarten through college-age youth
• Freddie Mac• InCharge Institute of America
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Official Partners (VIA MOU)• National Endowment for Financial Education
www.nefe.org
o Smart About Money www.smartaboutmoney.org- Major life events, economic survival tips, taxes, goals,
tools, articles, and more.
o MyRetirementPaycheck www.myretirementpaycheck.org- Explore Retirement Decisions
o Spendster www.spendster.org- NEFE’s YouTube like community on financial stories
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Official Partners (VIA MOU)
• InCharge Institute of America www.incharge.orgo Credit, housing, bankruptcy counseling (small fee)o Interactive Financial football game, Sergeant Debt,
ways to be debt free, preparing for natural disasters.
• National Military Family Association www.nmfa.orgo Information for spouses that want to become financial
educators (FINRA Financial Counselor Fellowship)o Links to other financial assistanceo Military Spouse Scholarships
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Official Partners (VIA MOU)• North American Securities Administrators Association
www.nasaa.orgo Variety of online investor education resources
(investing, saving, retirement planning) for all ages to avoid scams, frauds and invest with confidence.
• Freddie Mac www.freddiemac.como Get Help with your Mortgage & Identifying mortgage
fraudo Learn about program optionso Up to 12 month forbearance for unemployed borrowerso Understanding your credit score
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Benevolent Organizations• Association of Military Banks of America www.ambahq.org
• Employee Benefit Research Institute www.ebri.orgo Higher level of educationo Choose to Save www.choosetosave.org
- Free saving tools, Magic of Compounding, Saving, Retirement
• National Foundation for Credit Counseling www.nfcc.orgo Provides free and/or affordable services, financial literacy
courses, youth mentoring and more.o Member of Council on Accreditation and in 50 states and
Puerto Rico
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Can you list some government agencies that offer financial education?
Question?
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Government Agencies• Thrift Savings Board www.tsp.gov
o Investment plan for military members.
• DoD Savings Deposit Program www.dfas.milo Can deposit designatd combat zone pay up to $10,000
and earn 10%. USMC permits early registration.
• Federal Citizen Information Center www.gsa.govo Blogs on different topics include financeo Kids.gov o Publications.usa.gov for money topics
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Government Agencies• Consumer Financial Protection Bureau www.cfpb.gov
o Mortgages, Student Debt, Credit Card, consumer financial products, complaints and more.
• Federal Deposits Insurance Corporation www.fdic.govo Consumer Protections include: Financial Education & Literacy,
Banking, Loans & Mortgages, Small Business, Fraud and more
• Federal Reserve Board www.federalreserve.gov/consumerinfoo Consumer Information from bank accounts, leasing, personal
finance, calculators, building wealth, and more www.federalreserveeducation.org
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Government Agencies• Federal Trade Commission www.ftc.gov
o Consumer protections and educational material on economics
• Securities and Exchange Commission www.sec.govo Higher level education: Identity Theft Flags, and
Seeking Small Business Inputo Investor.gov
• Department of the Treasury www.treasury.govo Higher level financial information (Tax, Bonds,
Securities, Housing struggles, etc)
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Government Agencies• US Department of Agriculture www.usda.gov
o University extension officeso http://www.nifa.usda.gov/financialsecurity.cfm
• Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs http://irs.treasury.gov/freetaxprep/o Offers free tax help to people who make $50,000 or less
and need assistance in preparing their own tax returns.
• Department of Labor (DOL) http://www.dol.gov/ebsa/savingmatters.html o Savings Matters materials
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Question
•What is SCRA and can you list some of its financial protections that a Servicemember should know and seek legal advice on?
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Servicemembers Civil Relief Act (SCRA) they need to
know!• Starts the day they enter active duty and expires 180 days after release.
• Reducing the rate of interest for debts incurred before entering active duty to 6%.
• Covers rental agreements, security deposits, prepaid rent, eviction, installment contracts, mortgage interest contracts, mortgage foreclosure, civilian judicial proceedings, auto leases, repossessions of property, life insurance health insurance and income tax payments.
• Uniformed Service Employment and Reemployment Rights Act (ACT), Voting, and more.