GENERAL MONEY MANAGEMENT AND PERSONAL SAVINGS AND INVESTMENTS Elements: 45 & 46 Pages: 211-213

Purpose To provide TSMs some general money management techniques that may assist them to prepare financially for their transition To make TSMs aware of the importance and options available for savings and investments

Keys to Success Knowing where your money is going Knowing how to budget Knowing how to save Knowing how to invest

Budgets Budgets or “financial statements” are is a combination of personal financial data or better said, a tool used for reaching financial goals The two most useful budget tools are the balance sheet and the cash flow statement

Balance Sheet Balance sheet is also referred to as Net Worth Statement https://www.cnic.navy.mil/ffr/family_readiness/fleet_and_family_suppo rt_program/personal_finances.html

Cash Flow / Income Expense Statement Summary of income and expense transactions that have occurred over a specific amount of time (monthly/quarterly/yearly) Shows an individual exactly where money came from and where it went

Debt Management Systematic way to help individuals if they are in debt become debt-free Important for TSMs to pay down as much debt as possible prior to separation/retirement Typically offered through Fleet and Family Support Centers via the Personal Financial Management Program Individuals must put forth effort

Savings Accounts Savings accounts are designed to help individuals reach short and long term financial goals – recommended to have 3-6 months of living expenses saved for emergencies. Individuals should ensure that accounts are opened under FDIC or National Credit Union Association insured savings accounts Important to check withdrawal and deposit guidelines – some are limited to the amount of free transactions Does not provide a lot of interest earnings Designed to put money into an account and withdrawal when needed

Investments Bonds – fixed income investment where companies, cities, states, and even governments sell bonds to investors to help raise money to turn their particular institution. Certificate of Deposits – savings certificate that entitles the holder to the receipt of interest. CDs are issued by banks, savings, and loans. Stocks – when buying stock the purchaser takes an ownerships stake in a company. Purchaser becomes a part owner in the company with a claim on every asset and every penny in earnings and losses. Mutual Funds – pools money together from thousands of small investors and then its manager buys stocks, bonds, or other securities with it. The contributor gets a stake in all its investments. **DoD Savings Deposit Program

Online Resources https://www.cnic.navy.mil/ffr/family_readiness/fleet_and_family_support_program .html https://www.dfas.mil/militarymembers/payentitlements/sdp.html https://www.militaryonesource.mil/ www.annualcreditreport.com https://www.mint.com/ http://www.nmcrs.org https://www.va.gov/debtman/ https://www.saveandinvest.org/military http://www.militarymoney.com https://www.stashinvest.com/ https://scra-w.dmdc.osd.mil/scra/#/home https://www.vfw.org/assistance/financial-grants

Local Resources Fleet and Family Support Center – 619-556-7404 Command Financial Specialists Navy and Marine Corps Relief Society – 619-767-6800 or email sandiego@nmcrs.org Support the Enlisted Project - https://www.stepsocal.org/, 858-695- 6810

Questions?