FUNDAMENTALS OF FINANCIAL RESOURCES

1. 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

2. 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

3. 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.

4. Question? Do the services have restrictions on who can teach financial education to the service members and families?

5. Who can provide financial education to the service members? DoD Instructions 1342.27 and DoD Directive 1344.7 outlines who can teach financial education.

6. Question? Can you list the first financial educators you would send a service member or family member to for financial advice?

7. 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

8. Personal Financial Management Program • The Navy, Air Force, Army and Marine Corps have a program called Personal Financial Management Program. • 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.

9. 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

10. Command Financial Specialists (CFS) • Navy and Marine Corps PFM program trains E-6 (Staff Sergeant-SSgt) and above: • The E-6 or above must attend a 1 week financial education training program. • CFSs then assists the command to establish, organize, administer, and disseminates financial management information.

11. 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

12. Service Societies Air Force Aid Society (AFAS) www.afas.org Navy-Marine Corps Relief Society (NMCRS) www.nmcrs.org Army Emergency Relief (AER) www.aerhq.org Coast Guard Mutual Assistance (CGMA) www.cgmahq.org • Private non-profit organizations • Worldwide emergency assistance • Education assistance programs • Interest-Free loans and grants • Scholarships and interest-free loans for education • Counseling Military One Source http://www.militaryonesource.mil/MOS/f?p=MOS:HOME:0:::: Army Gold-Financial Education http://www.myarmyonesource.com/CommunitiesandMarketplace/FinancialLiteracyGame/default.aspx

13. Question? What is the agreement organizations sign to partner with the DOD/Military Services?

14. 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.

15. 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.

16. 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

17. Official Partners (VIA MOU) • FINRA Investor Education Foundation www.finrafoundation.org • Credit Reports/Scores • Council of Better Business Bureaus www.bbb.org/us/military-line • Company reviews, ratings, data collection, complaint and dispute resolution. • Financial education, outreach, information, free consumer guides. • Consumer Federation of America www.consumerfed.org • Disseminates information on consumer issues.

18. Official Partners (VIA MOU) • Military Saves www.militarysaves.org; facebook and twitter • Social marketing campaign to save for all ages • Institute of Consumer Financial Education www.financial-education-icfe.org • Online financial education: budgeting, children & money, credit card tips, credit file correction, identity theft, and quizzes. • Jump$Start Coalition for Financial Literacy www.jumpstart.org • National Coalition of organizations for financial literacy • Kindergarten through college-age youth • Freddie Mac • InCharge Institute of America

19. Official Partners (VIA MOU) • National Endowment for Financial Education www.nefe.org • Smart About Money www.smartaboutmoney.org • Major life events, economic survival tips, taxes, goals, tools, articles, and more. • MyRetirementPaycheck www.myretirementpaycheck.org • Explore Retirement Decisions • Spendster www.spendster.org • NEFE’s YouTube like community on financial stories

20. Official Partners (VIA MOU) • InCharge Institute of America www.incharge.org • Credit, housing, bankruptcy counseling (small fee) • Interactive Financial football game, Sergeant Debt, ways to be debt free, preparing for natural disasters. • National Military Family Association www.nmfa.org • Information for spouses that want to become financial educators (FINRA Financial Counselor Fellowship) • Links to other financial assistance • Military Spouse Scholarships

21. Official Partners (VIA MOU) • North American Securities Administrators Association www.nasaa.org • 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.com • Get Help with your Mortgage & Identifying mortgage fraud • Learn about program options • Up to 12 month forbearance for unemployed borrowers • Understanding your credit score

22. Benevolent Organizations • Association of Military Banks of America www.ambahq.org • Employee Benefit Research Institute www.ebri.org • Higher level of education • Choose to Save www.choosetosave.org • Free saving tools, Magic of Compounding, Saving, Retirement • National Foundation for Credit Counseling www.nfcc.org • Provides free and/or affordable services, financial literacy courses, youth mentoring and more. • Member of Council on Accreditation and in 50 states and Puerto Rico

23. Question? Can you list some government agencies that offer financial education?

24. Government Agencies • Thrift Savings Board www.tsp.gov • Investment plan for military members. • DoD Savings Deposit Program www.dfas.mil • Can deposit designatd combat zone pay up to $10,000 and earn 10%. USMC permits early registration. • Federal Citizen Information Center www.gsa.gov • Blogs on different topics include finance • Kids.gov • Publications.usa.gov for money topics

25. Government Agencies • Consumer Financial Protection Bureau www.cfpb.gov • Mortgages, Student Debt, Credit Card, consumer financial products, complaints and more. • Federal Deposits Insurance Corporation www.fdic.gov • Consumer Protections include: Financial Education & Literacy, Banking, Loans & Mortgages, Small Business, Fraud and more • Federal Reserve Board www.federalreserve.gov/consumerinfo • Consumer Information from bank accounts, leasing, personal finance, calculators, building wealth, and more www.federalreserveeducation.org

26. Government Agencies • Federal Trade Commission www.ftc.gov • Consumer protections and educational material on economics • Securities and Exchange Commission www.sec.gov • Higher level education: Identity Theft Flags, and Seeking Small Business Input • Investor.gov • Department of the Treasury www.treasury.gov • Higher level financial information (Tax, Bonds, Securities, Housing struggles, etc)

27. Government Agencies • US Department of Agriculture www.usda.gov • University extension offices • 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/ • 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 • Savings Matters materials

28. Question • What is SCRA and can you list some of its financial protections that a Servicemember should know and seek legal advice on?

29. 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.

30. Q&A Don’t forget the survey. Kelley.Faulk@usmc.mil