1. General Money Management & Personal Savings and Investments
Elements 45 & 46
Pgs

2. General Money Management
Element 45
Pg. 211

3. Purpose
To inform the Transferring Service Member (TSM) of some general money management techniques that may assist them in preparing financially for their transition

4. Standards
It’s a good rule to have at least 3-6 months of living expenses in the event of emergencies
TSM needs to understand that they may not be able to find employment immediately after separation or retiring
Want to encourage TSM to start working towards saving just $500 since it’s a more realistic goal

5. Budgeting
Budgets are compilations of personal financial data designed to communicate information of monetary matters, or in simple terms, a tool for reaching financial goals
Used to indicate the financial condition of an individual or family
One tool is a spending plan which is a compilation of personal financial data
Two of the most useful budget statements are the balance sheet and the cash flow statement

6. Balance sheet (Net worth statement)
An individual’s or family’s financial condition on a specified date by showing assets, liabilities, and net worth
Provides a current status report and includes information on what is owned (assets), what is owed (liabilities), and what the net result would be if all debts were paid off

7. Cash flow (Income and expense statement list)
Summarizes income and expense transactions that have taken place over a specified period of time
Tells an individual where money came from and where it went

8. Debt Management
A systematic way to help individuals if they are in debt become debt-free
Involves spreading the repayments over a period of time and stopping creditors from taking legal action
Based on income and expenditure
Not for individuals who get into unmanageable debt, but because of unavoidable reasons like removal from a job, relocation or separation

9. Debt Management Cont.
To remove the debts, individuals are also required to put forth efforts by sticking to a budget, refraining from over spending and stopping the use of credit cards
Debt management programs offered through FFSC’s have been designed and equipped to help individuals make debt repayments in a suitable manner
These programs are not always accessible after transition so encourage your Sailors to take care of their finances early before transferring

10. Resources Fleet and Family Support Center
Financial Specialist within your command
Military One Source
Credit Report Information
Debt Relief Help for Military Service Members

11. Resources Better Business Bureau Financial Management
veterans **This one is different than the book**
Financial Management
Save and Invest for the military
Navy Marine Corps Relief Society
VA Debt Management Center

12. Personal Savings & Investment
Element 46
Pg. 213

13. Purpose
To make the Transferring Service Member (TSM) aware of the importance and options available for savings and investments

14. Standard
When preparing for transition, it is important to not just focus on budgeting and debt reduction, but also to look at savings and investments as ways to prepare financially for the future

15. Savings
Banks and Credit Unions offer savings accounts designed to help individuals reach short and long term financial goals
When opening a savings account, individuals need to look for FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Association) insured savings accounts that offer competitive interest rates on low account balances
It’s important to check withdrawal and deposit guidelines
Some institutions limit the amount of free transactions available to the member
Do not provide a lot of interest earnings
Designed to put money into an account for withdrawal when needed

16. Investments Bonds Certificate of Deposit (CD) Most inexpensive type
Companies, cities, states, and even governments sell bonds to help raise money to run their particular institution
Certificate of Deposit (CD)
Savings certificate that entitles the holder to the receipt of interest
Are issued by commercial banks, savings and loans
It’s the banks way of “making money”

17. Investments Cont. Stocks Mutual Funds
When you buy a stock, you as the purchaser become a part owner in the company
They are high risk
Mutual Funds
Pools money together from a group of small investors and then its manager buys stock, bonds and other securities with it
When contributing money to a fund, the contributor gets a stake in all its investments

18. Resources
Financial Specialist at the command or Fleet and Family Support Center
*in your books it’s militarymoney.com*
Navy Marine Corps Relief Society
Veterans of Foreign Wars