Changing our Financial Culture CDR Dave Julian Deputy Director, OSD Office of Family Policy/

1. Changing our Financial Culture CDR Dave Julian Deputy Director, OSD Office of Family Policy/ Children and Youth

2. America’s Financial Culture The average American spends $1.22 for every $1.00 they make! The average household has seven credit cards and pays $8,500 a year in finance charges! The average 25-34 year old spends 25% of their income on paying down debt! The average American adult receives a failing grade for their knowledge of basic economic concepts! That means if you make $30,000 a year, you’re spending $36,600!? And meanwhile, the credit card balances continue to grow… That’s one-fourth of your income you can’t use for yourself or your family! They don’t understand how to properly budget, save, or invest You can’t afford to be average!! Bottom Line? Source: Financial Literacy and Education Commission – Jan 07; National Council on Economic Education

3. Integrity The Military’s Core Values will be upheld: Our Service members must pay their just debts* * Payday loans are just debts. Declaring bankruptcy betrays the unique trust that has been bestowed upon our Military and should be viewed only as a last resort, if at all.

4. The Pillars of Personal Financial Readiness Good Credit Financial Stability Routine Savings Low % Loans Security Clearance SGLI - Insurance TSP/SDP MWR

5. Financial literacy is the journey not the finish line. Road to Financial Freedom

6. Dear Sir, I am with the Nigerian Chambers Of Commerce And Industry, I have the privilege to request your assistance to transfer the sum of $47,500,000.00 into your account. Please reply urgently. Best regards Howgul Abul Arhu Dear Sir, I am with the Nigerian Chambers Of Commerce And Industry, I have the privilege to request your assistance to transfer the sum of $47,500,000.00 into your account. Please reply urgently. Best regards Howgul Abul Arhu How NOT to Build Wealth or Get Out of Debt* *and lose your identity at the same time!

7. How predatory are “predatory lenders”?

8. Consumer Federation of America Military Saves Campaign: Feb 24 – 2 Mar 2008 Military Youth Saves Pilot 2008 www.MilitarySaves.org InCharge Institute Military Money Magazine to CONUS/overseas (250K per issue) FINRA (Financial Industry Regulatory Authority) Investor Education Program www.SaveandInvest.org Bright Score Credit Assessment Program AFCPE (Association for Financial Counseling Planning Education) Annual Military Pre-Conference (Tampa 13-16 Nov 2007) Spouse Fellowship Program (FINRA + NMFA + AFCPE) Military Home Front (www.militaryhomefront.dod.mil) Lists Financial Readiness Partners w/websites: “Service Providers” - “Financial Readiness” - “Financial Readiness Resources” Partner Initiatives & Programs

10. Military Saves

11. Youth Outreach The Challenge: • Fewer than half of high school and college students have a regular savings plan • Only about one-fourth of those students stick to a budget • Over 30% of students don't keep track of their spending at all 50% of our military youth will join (or seriously consider joining) the military According to the National Endowment for Financial Education, as few as ten hours of classroom instruction can be enough to persuade students to improve their spending and saving habits “Youth and Money” Study – American Savings Education Council 2007

12. Military Youth Saves 2008 Pilot 11 Pilot sites: West Point, Fort Buchanan, Norfolk (area), San Diego (area), Camp LeJeune, Camp Pendleton, Beaufort, SC, Eielson AFB, Lackland AFB, Mountain Home AFB, Minot AFB, DLA sites: Susquehanna, PA and San Joquian, CA Youth Center, CDC, Family Support Center programs DoD Education Activity (DoDEA) Meeting scheduled - December 07 Financial-related curricula, standards, after school activities, etc DoD Financial Partners: Jumpstart Coalition ABA/AMBA Education Foundation BBB/B&GCA “Money Matters” How can we reach our youth? Youth Financial Readiness

13. Jumpstart your Financial Readiness Campaign Create a financial calendar of events Request professional financial counselors from MHN to provide training events Or contact your MFLC or Military One Source Invite families to training events Topics: Credit cards, interest rates, smart loans, insurance solicitation, identity theft, savings, TSP, SGLI, payday lending options, how to buy a house/car Encourage each Service member and spouse to take web-based competency assessment (then pursue financial counseling) Market TSP as a valuable tax free account to grow money for the future Encourage enrollment in SGLI (protect your family/yourself with $25,000 - $400,000) Work credit unions and banks on installation to provide training, payday loan alternatives, free ATM services in local community Plan Financial Management seminars in conjunction with TAP Financial Readiness Campaign

14. Issue: Money Matters Homepage Navigation Introduction/Link to Category Page Financial Tools Click “MORE” Financial Topics Debt quiz Click “MORE”

15. Financial Content Financial Materials Financial Calculators

16. “Financial Readiness = Mission Readiness”- Dr David ChuUnder Secretary of Defense for Personnel & Readiness Good credit Financial stability Regular savings Contribute to TSP Don’t Opt-Out for SGLI Low % loans Security Clearance Mission Success vs Mission Failure • Bad credit • Bankruptcy • No emergency savings • No retirement savings • No SGLI/insurance • Predatory loans • No Clearance

17. Questions? Feed the Pig www.feedthepig.org