Military Saves

Military Saves Campaign and Military Saves Week (February 22-March 1, 2009)

The Military Saves Campaign for 2009 begins on February 22 (Military Saves Week, February 22-March 1). The Military Departments are preparing their plans for implementing Military Saves at the installation level, utilizing the on-base financial institutions as partners with the local commands. The Department of Defense is coordinating the overall effort.

This year is being viewed by the Department of Defense as particularly important, given the recession and the economic challenges facing military members and their families. The on-base financial institutions will play a key role in ensuring the success of the 2009 Military Saves Campaign.

Military Saves is a sustaining, year-round effort and while Military Saves Week is a period of special emphasis. The 2009 campaign is designed to influence the savings behavior of Service members and their families throughout the year. The goal is to encourage, motivate and educate Service members and military families to increase personal savings, decrease debt, and develop financial fitness habits that lead to improve personal financial stability and ultimately, to mission readiness.

The Department of Defense senior leadership supports Military Saves because financial readiness equates to military readiness. The active role of military banks in supporting Military Saves in 2009 is critical. Below is a sample of what financial institutions can do as a player in promoting to the success of this effort.

More information and campaign resources can be found at http://www.militarysaves.org.

Financial Institution Military Saves Participation

1. Military Saves Week is 22 February – 1 March 2009 and is a great opportunity for you to participate in the Military Saves campaign. All participating organizations are welcome and encouraged to organize local promotions to stimulate increased/new/automatic saving and debt
   reduction throughout year. Enrollment is open year round. Military Saves is an ongoing campaign with 4 Quarterly themes: Save & Invest, Military Youth, Debt Reduction, and Retirement. Military Saves Week falls under the first quarter and is part of the Save & Invest theme.
2. You can get free downloadable resources (graphics, handouts, briefings and PSAs) at http://www.militarysaves.org/resourcekit/default.asp. We’ve just added some great Web Ads that you can put on your websites to spread the word.
3. Invite employees, members, and customers to commit to saving and reducing debt and being part of a saving community by joining Military Saves.
   • Enroll Savers during face‐to‐face transactions, by having dedicated computer terminals set to the Saver Pledge in branch lobbies, and by giving printed Saver Pledge cards to every customer/member and vendor
   • Banners, posters, fliers, and buck slips at branches and community events
   • Military Saves statement stuffers
   • Banners and links on your website
   • Coordinate with your on‐installation bank or credit union counterpart, bank/credit union liaison officer, commander, and commander’s project officers to support Military Saves Week activities with prizes, ad specialties, workshops, and PR/marketing expertise
4. Identify at least one existing or new “Military Saver” product that incents savings and/or meets minimum affordability guidelines: No fees or minimum balance for at least 18 months (to allow small savers to build up a balance over time); interest bearing; no or low minimum opening balance.
   
5. Here are some examples of incentives that can help enticing people to open accounts:
   • the ability to win a car
   • a contribution toward retirement
   • flat screen T.V.
   • gas cards
   • savings bond
   • free food
   • musical event
   • iPod drawing
   • free or discounted education
   • equivalents of green stamps
   • matching programs
   • energy savings
   • free exercise club membership
   • free quit smoking sessions
   • penalties for not savings (like tax penalties for early withdrawal; this is kind of the opposite of an incentive)
     

The following article by Katie Savant, Deputy Director, Government Relations, appeared in the National Military Family Association Monthly Bulletin, February 2009.  It places a military family focus on savings in time for Military Saves Week (February 22-March 1) and summarizes the quarterly themes for 2009: Save and Invest; Military Youth, Debt Reduction, and Retirement.

Pledge to Save as a Family

By Katie Savant, Deputy Director, Government Relations
The news is littered with stories of financial hardships. Big corporations are failing, the government has a major deficit and Americans’ savings rates are deplorable.  With all the negative press, you too may feel your personal situation resembles a sinking ship. This is not the time to despair, but rather, a time to learn some new skills, use your local resources and make savings a habit.

MILITARY SAVER’S PLEDGE I will help myself by saving money, reducing debt, and building wealth over time.    I will help my family and my country by encouraging other Americans to Build Wealth, Not Debt.  Take the pledge now at http://www.militarysaves.org/!

“Military Saves” week is February 22 to March 1. Use this opportunity to make a commitment to yourself and your family by visiting the Military Saves website and taking the Saver’s Pledge. Involve your whole family and have an open conversation about money. How can each member of the household help reach your savings goals? A child may decide to pack his or her own lunch to take to school, you and your spouse may opt to go for a walk and rent a movie on your date night, or your family may suggest having a potluck with another family instead of dining out. Encourage each member of the family to take the pledge and then put that pledge into action.
New to Military Saves in 2009 are quarterly themes: Save and Invest, Military Youth, Debt Reduction, and Retirement, designed to strengthen your momentum to save all year long.
Save and Invest The easiest way to save is to make savings automatic. Set up a separate allotment or an automatic transfer from a checking account to a savings account each month. The goal with savings is to be consistent. When you look at your take home pay and your expenses, it is hard to think about setting aside any extra amount of money; but, if it is done automatically then you will not have to worry about finding extra money at the end of the month. A great place for active duty service members to start is with their 3.9% pay raise. Retirees may want to use their annual cost of living adjustment. Rather than add this newly found money to your current budget, take the increase and put it directly into savings.
Many people have questions about how to save their money. Don’t be afraid to ask for help. There are financial experts waiting at an installation near you! Many installations are hosting a Department of Defense sponsored Financial Readiness Challenge event to help military families deal with the effects of today’s economy. Each event should include local, state and federal resources information to help military personnel and their families make direct contact with financial experts. Several installations host keynote speakers to address hot topics as well as providing hands-on workshops and one-on-one sessions with certified financial planners and counselors.
 
If your base isn’t hosting a challenge event, be proactive and ask your family readiness office to host an event, or if you are not located near an installation, contact Military OneSource at 1-800-342-9647 and ask about their new in-person financial counseling sessions. Six counseling sessions per issue, per calendar year are allowed for each eligible client. Additionally, Military OneSource offers telephone appointments for those unable to meet for face-to-face sessions.
Military Youth Often parents are afraid to share their financial concerns with their children. While children shouldn’t be burdened with the line-by-line family budget details, they are able to form good money habits from a young age. Encourage your children to take a portion of any money received as a gift or earned from chores or allowance and put it into a savings account. For additional suggestions on how to teach your children about savings, many parents turn to Sammy Rabbit. Sammy is a loveable cartoon character who empowers children to save “one dime at a time.” Visit www.itsahabit.com/index.html for more information and to sign up for a free newsletter that offers savings tips.
 
Debt Reduction Your savings plan will not be complete unless you address any outstanding debt you have and make a plan to attack it. For best results, enlist the help of a financial counselor to help you design a plan that fits your current situation. As you encounter the many changes that are common during military lifestyle transitions moving, activation of a Guard or Reservist, transitioning out of the service your plan will need to be re-evaluated. By asking a professional for a custom plan, not only will you be prepared to address these transitions, but you will also have someone you can check in with on a regular basis to ensure you are reaching your goals.
Remember, each family’s plan will be unique and must be flexible enough to adapt as your lifestyle changes.
Retirement Only about 17% of new active duty military service members attain 20 years of active duty service and become eligible for military retirement. Regardless of whether you plan to make the military a career, do not rely on this benefit as your sole means of future support. Military members and civilian federal employees can contribute to the Thrift Savings Plan (TSP). Check with your Human Resource office to see if your company has an employee savings program. In addition, many employers offer 401k retirement accounts and some match employee contributions. You and your spouse may also want to consider an Individual Retirement Account (IRA). The TSP, 401k and IRA plans are all portable and can move with you if you change jobs. Not only are you building a retirement fund, you are also reducing your current taxable income.
Take some time to put your finances first by signing up for the Saver’s Pledge at http://www.militarysaves.org/ and then put that pledge into action by finding a Financial Challenge event near you at http://www.militaryhomefront.dod.mil/ (click on Service Providers). By working together as a family you will inspire each other to find innovative ideas to secure your family’s financial future.