Finances Affect Service Members' Readiness, Official Says

You are subscribed to American Forces News Articles for U.S. Department of Defense. This information has recently been updated, and is now available. Finances Affect Service Members' Readiness, Official Says 09/03/2013 10:08 AM CDT Finances Affect Service Members' Readiness, Official Says By Terri Moon Cronk American Forces Press Service WASHINGTON, Sept. 3, 2013 - Financial readiness in service members' lives has a direct effect on mission readiness, the director of the Defense Department's office of family policy, children and youth said in a recent interview. Noting that financial instability can affect many aspects of service members' lives, from relationships to concentration on the job, Barbara Thompson told American Forces Press Service and the Pentagon Channel that DOD provides education and tools people can use to build their financial flexibility. "It's really important for our service members and their families to live within their means," she said, "and to do that, they have to have a budget, be disciplined and understand that having a debt load hurts their credit scores [and] their ability to afford [purchases]." Financial difficulties also can affect security clearances, she added. Several resources are available to help service members and their families establish and maintain household budgets, in addition to learning how to save money, she said. "We want to make sure people know [their finances] are under their control with support," Thompson said. Available resources include financial counselors at installation family centers who can help with reducing debt, managing credit card, and avoiding paying high interest rates, she added. Another option is the Military OneSource website, which offers financial advice, and where users can set up 12 sessions with a financial counselor per financial issue on topics such as establishing a budget and reducing debt. Counselors are available face-to-face or online, Thompson said. Credit unions and banks on installations also offer financial education through workshops and can help families work out budgets, she said. Thompson also warned that service members should be aware of fraudulent practices such as predatory lending. "People would get into them with very high interest rates, spending [significant amounts] of money just to pay off a predatory loan," she said. "So that's where our on-installation banks and credit unions came up with some short-term, low-interest loans." Thompson also recommended the SaveAndInvest.org website as a resource for self-initiators. It offers tools and calculators to get started on establishing and maintaining a household budget, she said. Handling credit wisely and keep spending under control are important aspects of personal financial readiness, Thompson said. "If we're living within our means, we're not running credit limit up on that credit card to purchase things that are may be 'wants' but not 'needs,'" she said. Paying off credit card debt every month avoids paying large amounts of interest, she noted. Having at least $500 in savings is another important aspect of budgeting, Thompson said, as emergency money that might be needed during a household move, or if a washing machine or car transmission fails. "It's not ... all about debt reduction," Thompson said. "The idea is that you come up with a spending plan of what's important to you, and [put away money] for savings." Biographies: Barbara Thompson Related Sites: MilitaryOneSource.org SaveAndInvest.org   Defense Department News Through Facebook On American Forces Press Service's Facebook page, you can post comments and share news, photos and videos. Go to http://www.facebook.com/pages/American-Forces-Press-Service/65137437532 or search for American Forces Press Service at Facebook.com. Update your subscriptions, modify your password or e-mail address, or stop subscriptions at any time by clicking on your 'User Profile' page at https://public.govdelivery.com/accounts/USDOD/subscriber/edit?preferences=true#tab1. You will need to use your e-mail address to log in. If you have questions or problems with the subscription service, please e-mail support@govdelivery.com. Have another inquiry? Visit the online FAQ at http://www.defense.gov/landing/questions.aspx for up-to-date information. Get the help you, your family, and fellow servicemembers need, when you need it. Visit www.WarriorCare.mil to learn more. Check out the National Resource Directory at www.nationalresourcedirectory.org, a new web-based resource for wounded, ill and injured service members, veterans, their families, families of the fallen and those who support them from the Departments of Defense, Labor, and Veterans Affairs. This service is provided to you at no charge by U.S. Department of Defense. Visit us on the web at http://www.defense.gov/. Updates from the U.S. Department of Defense