45: General Money Management PURPOSE STANDARD BUDGETING DEBT MANAGEMENT RESOURCES

Purpose Prepare TSM’s for Financial Transition Must produce A 12 Month Post Separation Budget Why? Because Its part of the Career Readiness Standards (CRS)

Standard Encourage TSM to Save Recommended to have 3-6 Months Why? Immediate Employment Not Guaranteed after separated/retired

Budgeting It’s A Compilation of Personal Financial Data Assist in Reaching Goals Condition Of Individual Or Family

Tools Spending Plan: used to determine the cash flow of an individual or family Balance Sheet: statement of assets, liabilities, or capital at a particular point in time Cash Flow Statement: flow of cash in and out of a business

Debt Management Systematic way to help individuals if they are in debt to become debt free Spread repayments over a period of time, should stop creditor taking legal actions

Debt Management To remove debt, individual must put forth the effort Fleet and Family offers programs but may not be accessible after transition

Money Management Resources Fleet & Family Command Financial Specialist Military One Source.com Navy Marine Corps Relief Society Annual Credit Report.com

Summary Must Produce a 12 month post budget Encourage TSM to start saving early Recommended 3-6 months worth of finances saved Financial Specialist are available to assist TSM’s…Go see them early before its too late

46: Personal Savings & Investment PURPOSE SAVINGS ACCOUNT INVESTMENTS RESOURCES

Explain to TSM the importance of saving and what options are available Purpose Explain to TSM the importance of saving and what options are available

Savings Account Banks and Credit Unions offer them Look for an FDIC or NCUA insured bank/credit union They do not provide a lot of interest earnings Designed to have money set aside for withdraw when needed

Bonds Certificate of Deposits (CD) Stocks Mutual Funds Investments Bonds Certificate of Deposits (CD) Stocks Mutual Funds

Options U.S. Savings Bonds: Very safe, very modest interest rates Certificates of Deposit (CDs): Safe (if insured), slightly higher interest rates, and less flexible Individual stocks: Significant potential for earnings, via dividends and price appreciation, but even greater risk

Options Municipal or Corporate Bonds: Higher returns, higher risk Mutual Funds: A pooled investment in a collection of stocks and bonds; higher potential returns with more risk

Potential Return Higher Low Low Risk Higher Individual Stocks Mutual Funds Corporate Bonds US Bonds CDs Savings accounts Low Risk Higher

Resources Navy Marine Corps Relief Society Fleet & Family Save & Invest.com Military Money.com