Thursday, February 15, 2007

Prepare for tomorrow through Military Saves

ALEXANDRIA — For most Soldiers, a savings account is something that’s not on their agenda, and in many cases, if they think about it at all, it’s in a vague, sometime-in-the-future sort of way.

“Maybe after my next promotion, I’ll start saving,” or “I just can’t afford to put anything away, I’m living month-to-month right now” is an all-too-common frame of mind.

Regardless of the rank or marital status, the Soldiers who make regular deposits to a savings account are by far the minority, and even fewer are planning for retirement, according to recent surveys by the Thrift Savings Plan, a voluntary retirement plan for DoD employees and uniformed service members. They recently surveyed almost 20,000 uniformed and civilian federal employees and discovered that less than 21 percent of active-duty service members are saving for retirement. Lack of funds was cited as the largest reason for not contributing to a savings or retirement account.

For Soldiers, the risk of falling behind financially carries even more problems; severe debt can result in the loss of security clearances and disciplinary or administrative actions. It also adds to their stress if they are deployed, as they’re distracted about payments, repossessions, or the welfare of their dependents rather than the mission they’re facing. Financial security directly impacts Army readiness and reduces stress for Soldiers and their dependents.

To combat this, the Defense Department has designated Feb. 25 through March 4, as Military Saves Week. This is part of the DoD Financial Readiness campaign, and the purpose is to encourage Soldiers and their families to establish positive fiscal management habits through savings and financial planning.

The Army’s Family and Morale, Welfare and Recreation Command, with the Office of the Chief of Public Affairs, is coordinating the Army’s response to Under Secretary of Defense David Chu’s message urging all departments to participate in Military Saves Week.

The Department of Defense has teamed with the Consumer Federation of America to provide tools, resources and financial counseling to service members through the Web site http://www.militarysaves.org. Programs like the Thrift Savings Plan and Savings Deposit Program make it easy for Soldiers to save, and there are huge tax and savings benefits to Soldiers who participate in these programs while deployed.

Most Soldiers have $50 or more that they can put away, if they really sit down, make a plan, and stick to it. In less than a year, they can go from “I never have enough money” to “I’m confident we can face an emergency, if it comes.”

The local Army Community Service Center and http://www.militarysaves.org can show the way. You can also find more information about Military Saves and financial planning online at http://www.armymwr.com, in your post newspaper, and at your local banks and credit unions.

Don’t just think about doing it. Think of protecting your finances and your family in the same way you think about protecting your country and our freedoms — it’s not something to put off until “someday.”