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Military Saves

Military Saves. Julie Kyrazis Assistant Director. Military Saves Campaign Overview. Origins Relevance Goals Saver Drive/Enrollment Motivational Tools Guard TSP status DoD Financial Education Responsibilities Resources Deployment Savings Opportunities. Campaign Origins.

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Military Saves

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  1. Military Saves Julie Kyrazis Assistant Director

  2. Military Saves Campaign Overview • Origins • Relevance • Goals • Saver Drive/Enrollment • Motivational Tools • Guard TSP status • DoD Financial Education Responsibilities • Resources • Deployment Savings Opportunities

  3. Campaign Origins

  4. Campaign Origins • Active duty AF Chaplain • Noticed a common theme in counseling cases: financial problems • Started offering financial counseling in the Chapel

  5. Campaign Origins “We had this fabulous program and people were changing their minds about saving money, but they would go from the chapel to their offices or shops or to the flight line and they’d be encouraged to overspend instead of being encouraged to build wealth through saving and debt reduction.”

  6. Campaign Origins • Discovered America Saves • Social marketing campaign to persuade Americans to get out of debt and save money • Worked with the America Saves and Eglin AFB to pilot program • Left active duty and joined Guard to spearhead Military Saves full-time

  7. Campaign Origins • Sponsored by the Consumer Federation of America • Part of America Saves Campaign and DoD Financial Readiness Campaign • Launched in 2007 throughout all Services • 2007: 7,740 • 2008: 22,747 • 2009: 22,989

  8. Overall and this year’s totals

  9. Why do we care about financial readiness?

  10. Financial Problems • Stress • Unhealthy coping behaviors • Smoking, drinking, overeating • Sleep deficit—immune problems—reduced cognitive abilities • Unhealthy emotions • Anxiety, frustration, hopelessness, depression • Top Ten Reasons People Divorce • A Top Reason for Suicide

  11. Security Clearance Issues • CY 07: AFCAF denied/revoked 2722 security clearances – 36% for financial considerations • CY 08 thru Oct 31: AFCAF denied/revoked 2919 security clearances – 38% for financial considerations • Follow “whole person” concept and look for patterns of irresponsibility

  12. Personal Savings Rate Not always a nation of over-spenders • Parts of 1970s and 1980s – 10% • 2005/2006/2007/2008 – Below 1% • Currently – Above 4% Tough times equating to good news for personal savings rate!

  13. Campaign Goals • Fostering and encouraging military members to save money • Positive peer pressure • Reinforced by units pledging to become Military Saves units • Members work with each other to promote positive financial habits • Saver drive • Encouraging military members to donate a portion of their paycheck each month to savings and paying down debt

  14. Detail Chinhae • 23 members of detail enrolled in Military Saves • Most investing in TSP or other outside investments • Emphasize financial education and sign up for personal investment classes

  15. Social Marketing Campaign • Military Saves encourages: • Have a personal financial plan • Establishing good credit • Saving a portion of each paycheck • Enrolling in SGLI, TSP, and (when eligible) SDP • Have an Emergency Savings Fund!

  16. Marketing • Marketing works otherwise companies wouldn’t have huge advertising budgets • Debt, consumer debt, and consumption beyond our means marketed for decades • Incredible level of comfort with debt • Credit card, car loans, etc.

  17. The Secret? • No magic bullet to change financial situation • 4 core principles of personal financial survival • Spend less (less than you earn), save the difference • Pay off high cost debt, as fast as possible • Invest in appreciable assets • Save for retirement

  18. Desired Outcomes • Increased household savings for short- and long-term needs • Decreased consumer debt • Command climate and overall culture that supports prudent financial behavior over consumption • Demand for financial literacy education and counseling • Supply of financial products that encourage saving, especially regular (automatic) deposits, systematic increase in amount of deposits, and advance planning for purchasing and investing

  19. In a nutshell Be financially fit!

  20. Annual Saver Drive • Annual during “Military Saves Week” • Last Sunday/Feb to first Sunday/Mar • In conjunction with America Saves Week • Military Saves Week 2010: 21 February – 28 Feb 2010

  21. Campaign Method • Modeled on the Combined Federal Campaign drive • Recruiting method is one-on-one personal contact of all personnel (military and civilian) • Supported by visible leadership, emails, website, public affairs, partnerships, posters, special events, fun challenges, and outreach to family members, contractors, and the general community

  22. Military Saves Week/America Saves Week Use it as a AAA check up: 1. Yearly reminder to Assess your savings status 2. Act to improve 3. When you act, act Automatically-through automatic savings 22

  23. Guard • Needs national, state and key leader support to succeed • Just like CFC – if there is not leadership emphasis, campaign will fizzle • Great tool to focus on Financial Readiness and encourage Guard members to save

  24. Ongoing Saving/Debt Reduction Campaign • Enrollment open 24/7 year-round • Run a campaign at any time during the year and focus on: • 4 Quarterly themes: • Save & Invest • Military Youth • Debt Reduction • Retirement

  25. Saver Drive • An organized effort to enroll as many people as possible in Military Saves

  26. Ultimate Goal • 10% or more of military personnel, civil servants, and defense contractor employees worldwide enrolled as Military Savers - 300,000 • Guard – 450,000 x 10% = 45,000

  27. What will you give me? • Financial Security • Savings Reminders: Receive electronic newsletters for financial readiness and savings tips • Your part: Encourage savers to get involved in encouraging others to: • Build wealth. Not Debt. • Everyone wins!!!

  28. America Saves E-Wealth Coach

  29. Military Saves Newsletter

  30. What tools motivate people to change their behavior?

  31. Success Stories

  32. Sailor • Divorced single mom with lots of debt • Self-educated • Went on a financial diet and used cash for everything • When out of debt, put all bonus and extra money into savings and TSP • Owns own home, puts 20% into TSP, has college savings for children • Still drives her 95 Toyota Camry

  33. Airman • Came to the service with lots of debt • Took advantage of educational resources available • Used money from TDYs and deployments to pay off her bills • Has all the things Military Saves advocates: • A Good Basic Need Budgeting Plan • Money Market Emergency Fund • Roth IRA • TSP

  34. Colonel • Paying forward what he’s learned • Teaching classes during his deployment to Kuwait • Using common sense principles • Taking the PhD-level wording and bringing it to a level a Private First Class can understand

  35. Savings Tips

  36. Tips from Savers • Put away money monthly into a vacation and a Christmas fund – start small and increase with salary raises • Avoid the temptation to shop impulsively—stop reading fashion magazines and catalogs • Buy the new washable utility uniforms and save money on dry cleaning • Shop at the commissary

  37. $78 for a movie for a family of 4

  38. Squeeze 5 More Years Out of Your Vehicle • Maybe not 35 years! • Or, weigh the options, do the math, buy a used car

  39. Not Necessarily a Good Savings Tip - Cut your own hair

  40. Messages

  41. 42

  42. Where does the Guard stand on TSP?

  43. TSP Air Guard Participation - Dramatically increases at E-5 - Overall less than 25% participation in enlisted ranks

  44. TSP • Army Guard Participation • Overall around 12% participation in enlisted ranks • Dramatically increases at E-6

  45. $1500 per year for 20 years @ 6% $1500 per year for 30 years @ 6%

  46. $15,000 per year for 20 years @ 6% $15,000 per year for 30 years @ 6%

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