What are the best ways to get young service members and veterans to care about managing their personal finances?

2016-12-28T09:24:42-05:00

There are many tools provided by for-profit and not-for-profit groups to help educate young military families about budgeting, saving, investing, etc. But there is a real challenge in reaching these families and "activating" them. How do we make them care and engage?

Response by MSG Brad Sand made Dec 28 at 2016 9:26 AM

2016-12-28T09:26:07-05:00

Get them to wake up? LT Private RallyPoint Member the real question is how to get anyone to care about managing their personal finances? The good thing for those soldiers able to get a retirement, they are WAY ahead of nearly all their civilian World friends.
As a recruiter, I would try to stress to our new recruits that investing young was so important and how the money they invested early on was so much more powerful and easy than it would be later...most did not listen. Then the curse of divorce, that always appears to be worse within the military, could quickly destroy years of wise investing, as well.
One of the saying that was big during my time in uniform is so appropriate for this subject. 'No one plans to fail, they only fail to plan.'

Response by SSgt Shawn Springsteen made Dec 28 at 2016 9:26 AM

2016-12-28T09:26:44-05:00

Education on the power of the 8th wonder of the world...compounding interest!

Response by CPT Jack Durish made Dec 28 at 2016 9:36 AM

2016-12-28T09:36:15-05:00

They need paternal guidance that they probably never received before they left home. Interestingly, OCS candidates in my day had to open checking accounts and an overdraft or any other abuse was reported by the bank to the OCS Co.pany commander and could result in dismissal (or so we were told). Also, USAA which provides banking and investment services as well as insurance, provides educational materials in managing personal finances to children of members when they are grandfathered with accounts of their own. Maybe such materials could be provided to young service members on active duty when they open USAA accounts of their own

Response by SSG Private RallyPoint Member made Dec 28 at 2016 9:42 AM

2016-12-28T09:42:05-05:00

From what I've seen I think that part of the is when or if the information about these groups is put out. The times that I've seen it put out are during pre or post deployment briefings when everyone's mind is elsewhere or when the spouse isn't there. The speakers often say "If anyone has questions see me afterwards" but if the spouse isn't there or the mind is on getting out of there, what good is the info? A brochure is likely going to end up in the back seat of the car or buried on the counter forgotten about.

Response by Maj Marty Hogan made Dec 28 at 2016 10:11 AM

2016-12-28T10:11:11-05:00

LT Private RallyPoint Member Make them- then show them how it works. They used to make them save so much for college after the early 80s programs failed. CPT Jack Durish is spot on.

Response by LTC Paul Labrador made Dec 28 at 2016 10:13 AM

2016-12-28T10:13:15-05:00

The problem is that we are dealing mostly with young 20-somethings who don't tend to think long term. How do you get through to that demographic? It's hard. The best we can do is give them the info and hope they take it to heart. Being an adult sometimes means they have to take some initiative.

Response by LT Private RallyPoint Member made Dec 28 at 2016 10:31 AM

2016-12-28T10:31:15-05:00

CPT Gabe Snell MSG Brad Sand SSG Private RallyPoint Member LTC Paul Labrador Maj Marty Hogan CPT Jack Durish SSgt Shawn Springsteen Thank you all for the helpful comments. A follow-up question would be, what form should education on personal finances be provided? Does it still have to be in-person and in their face to have any impact? Or do we need to play to the millennial style and focus instead on easily accessible, user-friendly apps and websites that provide the information in bite-size pieces? Or something else?

Response by COL John McClellan made Dec 28 at 2016 10:34 AM

2016-12-28T10:34:52-05:00

You are asking good questions, LT Brian Wagner!! Train your NCOs (if needed) in an area like this, and let them train/coach/council the Soldiers!

Response by LTC Kevin B. made Dec 28 at 2016 10:44 AM

2016-12-28T10:44:48-05:00

The best tool I found was to give them a clear scenario where two people start investing/saving at different times (same assets, and same end points, but different start points). Then, quantify the "cost of procrastination." That made them perk up really quick.

Response by SFC Dante Alanis made Dec 28 at 2016 1:45 PM

2016-12-28T13:45:10-05:00

I've been debt free, credit card free, paid off my house, and very happy for over six years. It was very easy... SPEND LESS THAN WHAT YOU MAKE!!!!!!!!!! I realize that my frugality was annoying to my wife for many years, but who's laughing now...! We got rid of ALL debt by age 41. You don't need a college degree to add and subtract; what you do need is to realize that trying to keep up with the Kardashians, or your neighbor for that matter, is what will end up being your demise. I am not trying to brag, believe me; but getting by with an old car, not wasting thousands on video games, not barbecuing every weekend, not buying jewelry and many other "status symbols" that simply cannot be sustained without going into debt, that is what got us debt free years ago. I've had my house budget on Excel since 2001. I know what our income was and every expense we made since back then. I passed that budget format to my daughter and at age 29 she and her husband are debt free and about to buy their first house which can be paid off before they turn 40. They've paid off college loans, cars, credit cards etc. and will buy a house with a healthy savings account. I know she will pass this on to my granddaughter and nothing makes us happier. Just remember to use common sense, and SPEND LESS THAN WHAT YOU MAKE!!!!!!!! Seriously though, if any body needs more detailed advise, send me an email. I'll be glad to help anyone who's willing to listen.

Response by LTC John Wilson made Dec 28 at 2016 2:11 PM

2016-12-28T14:11:14-05:00

Infusing financial fitness and education into our already busy routines will become critical considering the new "retirement" programs that could financial destroy less educated Service Members. It requires caring leaders who are willing to mentor the Service Members under their care on these finer points that matter and having the tools to equip them for the job.

The First Command Educational Foundation has many such tools. The great thing about accessing these resources and formally taking on the roll is that First Line Leaders can add their training and mentor programs as bullet comments on OERs/NCOERs.... Commanders and Senior NCOs should plan at least a few hours on the training calendar each quarter dedicated to these topics.

Were I in command, I would try and build a Mentor/Apprentice program to reward my leaders and their Soldiers for participating in programs and taking measurable, positive steps towards financial security and independence (e.g. passes or other incentives for successfully completing financial training or publishing an actionable financial plan). Such programs must also encourage Family Support Group participation.

I have personally dealt with enlisted Service Members who may literally retire from their military service in their early/mid-forties, buy their dream property and live out the rest of lives without ever having to work another day in their lives because they became inspired and engaged in directing their own financial future.

As I conclude this comment, I cannot help but wonder what positive impact such interactive programs may have on re-enlistment rates when we teach them how to leverage the full range of benefits available through their service as part of a comprehensive Personal Financial Plan.

https://www.fcef.com/

First Command Educational Foundation

First Command Educational Foundation (FCEF) is a 501(c)(3) non-profit public charity dedicated to improving financial readiness through education and scholarship opportunities. FCEF has been providing its services since 1983.

Response by MAJ Raúl Rovira made Dec 28 at 2016 9:22 PM

2016-12-28T21:22:06-05:00

"You don't know what you dont know".
Personal finances is something not normally taught like learning history in high school. We all know how to plan a mission(for the most part) but not finances. Sounds crazy. Educating folks helps them make the plan, decisions, and adjustments. If it is too complex then hire a trustworthy professional.
During the many TAP classes I've been a guest speaker, I can see fear in soldiers and officers eyes who did not plan financially for their exit out of the military.
Planning for retirement should star the first day in the military.

Response by Cpl Justin Goolsby made Dec 29 at 2016 12:48 PM

2016-12-29T12:48:09-05:00

Honestly, I think it's best to reach them at the beginning of their service instead of at the end. When we get out, we have to take a mandatory separations class which includes budgeting. I'm pretty good with money, but they made me feel stupid simply because of things I hadn't thought of. If troops are given this class at the beginning of their enlistment instead of right before they get out, I think they will be more set up for success because they'll still have time to plan accordingly and change habits instead of right before they lose their only source of income.

Response by LT Private RallyPoint Member made Jan 5 at 2017 10:27 AM

2017-01-05T10:27:42-05:00

For those who are or who work with young service members, the one financial education product I'd personally suggest checking out is the Command Your Cash Microlearning Center from the USAA Educational Foundation (which is a 501c3 nonprofit separate from the corporation). I do some consulting work for them, so you could call me biased, but I also think that "microlearning" -- short snippets of educational content provided in an accessible manner with knowledge checks built in -- works a lot better for millennials and whatever generation is coming after millennials ;-)

https://usaaef.org/tools-media/microlearning

Microlearning Center | The USAA Educational Foundation

Do you like money? Of course you do. Learn how to take command of your cash today. The actions you take now will benefit you sooner than you think.

Response by Cadet LT Private RallyPoint Member made Jun 19 at 2017 1:18 PM

2017-06-19T13:18:57-04:00

As a young 20 something year old I have made many of the financial mistakes that a lot of the senior personal on this discussion are warning against. What is a good method for me to be able to share my experiences with my subordinates or colleagues so that they do not have to learn to be financially responsible by making the same mistakes I made?

Response by SSG Kirk Stafford made Aug 23 at 2017 10:35 PM

2017-08-23T22:35:56-04:00

By getting their leadership to care first! Team leaders and squad leaders should set the example and reinforce the importance of financial freedom as relates to the job at hand. For example - security clearances and how those who mismanage funds are generally more susceptible to being leveraged from outside sources.