Good morning team,

I think this subject is a vitally important one especially for the new generation of Soldiers coming into the Blended Retirement program. For the past few years the term financial literacy has evolved for me along with its importance. As a leader I have made my best effort at informing Soldiers and colleagues on the importance of long term financial health. As a commissioned officer financial literacy quite literally dictates the longevity of my career, in terms of maintaining credit and Security clearance status.  I personally have recommended others to read up on the TSP, Dave Ramsey, Interest terms, and Debt/Income ratios in the hopes that they too can establish/maintain financial footing.

What does “financial literacy” mean to you?

– Financial literacy to me means having an understanding of a multitude of financial workings (Interest, credit, savings, and investments). I don’t believe one has to be a financial guru but a good grasp on how these things interact and work and the impact they can make both positive and negative goes a long way.

• How do you help Soldiers build the vocabulary necessary to talk about financial literacy?
• – I myself frequent sites like http://www.investopedia.com to read up on how financial systems function. The site has a vast dictionary on financial terms that break the concepts down to the lowest level so nearly everyone could understand.
• How can the new blended retirement system be used to Soldiers’ advantage?
• – I am grateful to be under the legacy system; however, the Blended retirement system can have great benefits for Soldiers if they think in “Long Terms”, while the economy remains strong and gains climb the year over year compound can create significant gains if the Soldier contributes to the best of their ability. This will also allow them to benefit from the Government’s contribution “Free Money”.
• Tell a story about how you built or helped build financial literacy with your team.
• – I have helped a few Soldiers over the past few years build and utilize a “Zero-Sum Budget”. I have showed my own by laying out all personal expenses vs. Income with the goal of the two equaling $0. This method demands accountability of every dollar. The Soldier must determine where any remaining “Unspent” money is going (Savings, Investments, Travel, or Leisure, etc…).