Military Saves 29 June 2009 Coordinating Committee and Partners Meetings

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop Department of Defense Financial Readiness Office of Personal Finance Military OneSource Center OSD, Military Community and Family Policy

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop Topics Financial Readiness Campaign Financial Roadshow FINRA Military Retirement Confidence Survey Questions

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop Good news……? Our Service members and their families are not immune from the storm, but they do have some shelter: Guaranteed paycheck Spousal employment programs Low-cost child care programs Medical/dental benefits Commissary/Exchange privileges & other installation support Special pays & moving allowances Tax-free housing and subsistence allowances Only 25-30% own homes as primary residence

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop “Financial Readiness = Mission Readiness” Good credit Financial stability Regular savings Contribute to TSP Don’t Opt-Out for SGLI Low % loans Security Clearance Bad credit Bankruptcy No emergency savings No retirement savings No SGLI/insurance Predatory loans No Clearance Mission Success vs Mission Failure

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop Started in 2003 to reduce the stressors associated with financial issues on Service members and families Education, resources, protections Federal, state, local/non-profit outreach and programs Platform represented by 8 “Financial Pillars” The DoD Financial Readiness Campaign DoD has been emphasizing financial readiness as a critical component of mission readiness long before the current economic crisis:

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop The Pillars of Personal Financial Readiness Good Credit Financial Stability Routine Savings TSP/SDP SGLI/ Insurance Low % Loans Security Clearance MWR

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop “The Right Information, at the Right Time, to the Right People” Delivering correct, user-friendly information Reaching Guard and Reserve families Reaching geo-isolated families Meeting emerging expectations of new generations “High Tech-High Touch” Building a worldwide, trusted communication system to connect with troops and families Changing Community = Changing Services Challenges The Digital Generation

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop Tools for installation commanders upon request Tailored to the needs of the installation Assist the commander, installation PFM to reach troops & families Designed to augment, not replace, existing efforts 1-day events which feature: Financial personalities as keynote speakers Workshops from library of topics One-on-one financial counseling Stay behind teams Youth financial education activities Installations encouraged to utilize all installation resources to include Banks and Credit Unions Financial Roadshows

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop The Savage Truth on Money "America's Money Answers Man" Sammy the Rabbit John Sileo “Think Like a Spy” Terry Savage Jason Goodman Guest Speakers Identity Theft Expert Dr. Robert Manning Credit Card Nation

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop Take Five: What I Wish I Had Known About Personal Finance Better Than a Budget: Develop a Spending Plan That Will Keep You On Track The Perils of Plastic: Avoid Drowning in Debt... Charge Wisely! Dream Big - Plan Now! Make Your Ideal Retirement a Reality Pay Yourself First: Why You Should Sign Up for the Thrift Savings Plan Today Have You Fed Your Pig Today? Simple Tips for Saving & Investing Ready for Everything? Insurance Essentials for the Service Member With or Without a Family The Wheels You Want: Successful Car-Buying Strategies Home, Sweet Home: Strategies for Home-Buying and Protecting Against Foreclosure You’ve Earned It! Making the Most of Your Military Benefits Before You Take Off: Financial Planning for Deployment Don’t Lose It! How to Protect Yourself Against Identity Theft Workshops

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop Military OneSource Military One Source ( 24/7 world-wide assistance, on-line and by phone “Money” Section Telephonic financial counseling or face-to-face upon request  Effective 17 Nov: Partnership with National Foundation for Credit Council (NFCC) Mortgage/foreclosure assistance Referrals, connections to key helping agencies

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop FINRA Military Financial Confidence Survey Military more likely to take an active role in financial planning Military has more realistic view of financial requirements/ preparations More outreach required to raise awareness of TSP Military financial educational programs and services are positively influencing financial behavior

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop TSP Participation

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop Great News! Military Money magazine Americans Well-Informed on Automobile Retailing Economics (AWARE) reports: “America’s military personnel are particularly prepared for this major financial event in their lives, more so than Americans in general….they are more likely than the average consumer to understand the process of buying and financing a vehicle, and to spend time researching their options” 1-Credit Card, 2-Vehicle Financing, 3-Furniture/Appliance Financing, 4-Home Improvement Loan Military Members Research Financing Options Respondents who Completed > 3 hrs of Research

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop Join us to help Service members and Families make sound financial decisions. Thank you for your service to our Military!

Defense Senior Leadership Spouses ’ Conference NGB – Joint Family Program Volunteer Workshop Questions? Dave Julian Director, Office of Personal Finance

Military Saves Week 2009 Evaluation Selected Observations Steve Holt HoltSolutions June 29, 2009

SurveyMonkey Instruments Designed to facilitate standardized self- reporting Limited use: Project Officer Reports – 30 National Partner Reports – 17 Financial Institution Reports – 12

Project Officers -- Audience Audience # saying it was a primary audience Enlisted personnel28 Officers14 Spouses14 Civilian personnel8 Children7 Community institutions2 n = 30

Project Officers -- Involvement Office/Personnel # saying was very involved Family programs office21 Command section11 Senior enlisted advisor10 Public affairs10 On-installation credit union 10 Comptroller2 On-installation schools2 Exchange1 n = 30

Project Officers -- Methods Promotional Method # saying there was high effort Material to personnel21 Briefings for personnel16 Participation in internal events 16 1-on-1 financial counseling 15 Financial education classes 15 Material to spouses14 Press releases/events (internal) 12 n = 30

National Partners Reporting Navy-Marine Corps Relief Societies6 Other military offices4 National membership organizations3 Non-profit organizations2 National association of affiliates1 Financial institution1

National Partners -- Methods Promotional Method # saying there was high effort s9 Participation in local events 9 Participation in national events 8 Information on website7 Newsletters4 Press releases or events3 Conferences3 n = 17

Financial Institutions -- Incentives Savings Incentives # offering Special fee or no fee accounts7 Financial seminars5 Special interest rates for accounts4 Gifts or matches for opening accounts 3 Gifts or matches for adding to accounts 2 Prizes or drawings1 [no savings incentives offered]1 n = 12

Savers Pledges (Military Saves)

Leadership – Interest/Expertise Coord. Comm.-19Partners Comm.-7 MEAN SCORE Std Dev. MEAN SCORE Std Dev. What am I (my organization) most interested in doing? Building supportive community efforts Developing military leadership commitment Promoting debt reduction Promoting financial education Promoting savings Providing financial education

Leadership – Expectations Coord. Comm.-19Partners Comm.-7 MEAN SCORE Std Dev. MEAN SCORE Std Dev. What should Military Saves be most focused on doing? Building supportive community efforts Developing military leadership commitment Promoting debt reduction Promoting financial education Promoting savings Providing financial education

Leadership – Self-Assessment Coord. Comm.-19Partners Comm.-7 MEAN SCORE Std Dev. MEAN SCORE Std Dev. Where do I see M.S. putting its efforts currently? Building supportive community efforts Developing military leadership commitment Promoting debt reduction Promoting financial education Promoting savings Providing financial education

Leadership Survey -- Observations Military leadership development – considerable disparity Coord. Comm. lack of clarity & consensus on desired focus of Military Saves Financial education well-represented, but not desired focus for Military Saves Debt reduction valued less than promoting savings Role of community building efforts?

A Four-Step Model for Military Saves 1.Create an information environment promoting a clear direction of action 2.Provide the opportunity for a personal commitment to action 3.Foster the availability of tools to translate commitment into action 4.Observe evidence of action

Create information environment ACTIVITYMEASUREMENT MS campaigns conducted by department- & service- wide organizations, installations/ commands, program offices Self-reporting of participation (through appropriate channels of communication)

Provide opportunity for commitment ACTIVITYMEASUREMENT Savers Pledge for military personnel Number of Savers Pledges in America Saves database, with a reach goal (over a period such as 5 yrs) of 30% of all military personnel & minimum expectation of 10%

Foster availability of tools for action ACTIVITYMEASUREMENT Military-associated financial institutions offering MS-identified products that promote savings DFAS adopting “opt- out” policies for savings vehicles available through payroll deduction Number and availability of MS-identified products (reported by financial institution intermediaries) Creation of opt-out policies for emergency savings accounts, TSP, & SDP

F.I. Intermediary Reporting (2009) Armed Forces Bank / AFB of CA –20 of 36 on-base institutions involved –all waived minimum balance requirement for 12 months for regular savings accts opened during MSW –221 new accounts opened Community Bank Overseas –560 adult savings accounts opened –309 scheduled direct deposits set up for savings accounts –111 CDs opened –100 scheduled transfers set up for savings accounts

ACTIVITYMEASUREMENT Monitoring of account activity by military- associated financial institutions and DFAS Use of identified savings products (reported by financial institution intermediaries & DFAS) Observe evidence of action

Contact Information Steve Holt HoltSolutions 4545 Connecticut Ave. NW, #1011 Washington, DC (202) voice (202) fax

2009 Rebranding

BRAND CHALLENGES: Multiple sub-brands with various design and copy executions lead to brand degradation in the marketplace Confusion around what America Saves means – Religious? Money? Other? Consumers are intimidated by the word “wealth” Consumers aspire to saving more than just change and need to see that starting small can get big results Military Saves can not use quarter icon Current logo and icon appear dated Current color palette is producing challenges and does not allow for design flexibility

New Brand: Positioning and Summary Motivational/Inspirational We inspire the non-saver to join America Saves and start saving money with this idea. Many other people have committed to saving and you can too, even if you only have a quarter or pocket change to save. You can be included in that group of savers. Summary Paragraph America Saves believe there is strength in numbers. You can join the many people who have already committed to saving towards a goal – home ownership, tuition, debt repayment, even retirement. And you can start saving with the smallest of numbers. Because at America Saves, we also believe that if you can save a quarter, you can save. Start with any amount, reach any goal. Join us. The difference between dreams and a reality is a savings account. Tagline Start small. Think big. Tone Inspirational, motivational, encouraging, supportive, straightforward.

The new logo and tagline address campaign goals and challenges while supporting the developed positioning. Executional Considerations Green color and $ address that we are talking about saving money “Start Small. Think Big.” is in non-intimidating consumer language and drives home the point that every bit helps – very aspirational Circles graphic –Maintains current quarter icon –Symbolizes growth over time –Allows America Saves to support branding throughout design pieces

Sub-Brands In developing a sub-brand strategy, we wanted to make sure to leverage the national brand to assist in supporting sub- brands.

Colors In selecting primary and secondary color palettes, we wanted to make sure they were truly “ownable” for America Saves NOTE: Unless you have marketing dollars to invest in primary colors (ex., McDonald’s), you want to make sure colors are unique and “ownable”.

Using Sub-Branded Logos

Logo Use (continued) When combining the logo with other elements, the logo should be a prominent part of the overall design. When using a colored background, be sure to use colors from the brand palette, and always keep the logo in white. The logotype and tagline should not be retypeset, altered or modified in any way. The logo can appear without the tagline, but should be used with the tagline where possible.