1. Military Community and Family Policy
Personal Financial Readiness Pillars
Brenda McDaniel
Office of Family Readiness Policy
Office of the Deputy Assistant Secretary of Defense

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

3. Decision
Revise and reduce the eight (8) Financial Readiness Pillars to four (4) Financial Readiness Pillars embedding the “myMoney Five” in the four pillars:
Manage
Save & Invest
Protect
Future Planning
The Financial Readiness Pillars grouped into two sections:
Financial Readiness Standards of Behavior
Military Financial Resources

4. DoD Financial Readiness Pillars Overall Financial Well-Being
Financial Pillars
DoD Financial Readiness Pillars
With Standards of Behavior and Financial Resources
Overall Financial Well-Being
Being an Informed Consumer
Manage
Save & Invest
Protect
Future Planning
Manage Money:
Set Goals
Earn
Spend
Borrow Wisely
Save First & Then Invest:
Life-Cycle Decisions
Retirement Plans
Consumer Protection:
ID Theft
Consumer Skills
Prevention of Scams
Insurance
Emergency Savings
Transition Planning
Evaluate Plans Often:
Decision Making
Military Life-Cycle Decision
Financial Planning
Estate Planning

5. Financial Well Being
Consumers can experience financial well-being - or a lack of it - regardless of income.
A personal state, not fully described by objective financial measures.
Well-being is defined as having financial security and financial freedom of choice, in the present and in the future.
Source: Consumer Financial Protection Bureau (2015). Financial Well-being: What it means and how to help.
Available at: finance.gov/reports/financial well-being

6. Financial Behaviors Guided by: Personality Attitudes Knowledge Skills
Actions consumers take with the options available to them
Source: Consumer Financial Protection Bureau (2015). Financial Well-being: What it means and how to help.
Available at: finance.gov/reports/financial well-being

7. Pillar I - Manage “Manage Money” Manage current income and expenses
The Standards of Behavior:
Set Goals and Earn
Spend
Borrow Wisely
Resources:
Military OneSource
My Training Hub financial courses
Personal Financial Managers (PFMs)
Personal Financial Counselors (PFCs)
Banks and Credit Unions
Financial Collaborators
Financial Calculators
Retirement Calculators

8. Pillar II - Save & Invest
“Save First & Then Invest”
Pay yourself first
The Standards of Behavior:
Establish routine savings
Life-Cycle Decisions
Retirement Plans
Save for significant life events
Resources:
Military Banks and Defense Credit Unions
Military OneSource
PFMs
PFCs
Financial Collaborators
Banks and Credit Unions
Financial Calculators
Retirement Calculators
My Training Hub financial courses
Morale, Welfare, and Recreation (MWR) programs

9. “Consumer Protection”
Pillar III - Protect
“Consumer Protection”
Prevent ID Theft and protect assets
The Standards of Behavior:
Consumer skills
Prevention of scams
Insurance
Emergency savings
Planning for transitions
Resources:
Use Credit Reporting Agencies
Services’ Relief and Aid Organizations
Military OneSource
PFMs
PFCs
Financial Collaborators
Banks and Credit Unions
Financial Calculators
Retirement Calculators

10. Pillar IV - Future Planning
“Evaluate Plans Often”
Plan for emergency, major purchase, and retirement
Standards of Behavior requires:
Evaluation of financial planning and estate planning
Identify legal plans
Decision-making throughout the Military Life-Cycle
Resources:
Military OneSource
PFMs
PFCs
Financial Collaborators
Banks and Credit Unions
Financial Calculators
Retirement Calculators

11. Installation Credit Unions
In collaboration with PFMs and PFC’s provide personal financial education and counseling:
Setting Goals
Spending plan
Borrowing - low interest rates
Consumer skills
Prevention of scams
Emergency savings

12. Closing Message Manage Save & Invest Protect Future Planning
End state: To serve as a reminder to educate, practice, and implement positive financial behaviors and skills.