'Military Saves Week' spotlights importance of saving

Published March 15, 2011
By Bev Price
Airman and Family Readiness Center

PETERSON AIR FORCE BASE, Colo. -- "It's not what you make, it's what you keep," said Pam McClelland, a senior program analyst in the Pentagon's office of family policy and children and youth. "A little bit can really mean a lot."

Defense Department officials are putting the spotlight on financial readiness, particularly the importance of saving, as part of a larger, national emphasis on financial well-being. "Military Saves Week," part of "America Saves Week," is an annual event intended to help people become better financial planners.

Military Saves Week concluded at Peterson Air Force Base Feb. 25 with a donation to the Friends of Family Support, a private organization which helps support military families.

The campaign's emphasis is on savings, which is appropriate in today's economy, Ms. McClelland said. The campaign's slogan, "start small, think big," promotes the long-term benefits of saving even a little bit each month.

To start, people should devise a savings plan with set goals in mind, whether it's a new house, college education, a trip or retirement, Ms. McClelland said.

She suggested that people figure out what their goal will cost, and then divide that sum by the number of paydays to accomplish the goal. This gives them incremental goals along the way, she said.

"People would come to me and say, 'I have 200 bucks in my savings account,' and I'd say, 'That's great. What's it for?'" she said. "If they didn't have an answer to that, odds are it's not going to stay there, because they don't have it dedicated to something that's going to make their life better."

A survey of spending and saving habits released Feb. 22 drives home Ms. McClelland's point. The survey showed that consumers with savings plans are far more likely to save than those without one.

In one survey finding, 85 percent of the people surveyed with a savings plan said they have sufficient emergency savings, while just 50 percent without one said the same. And 61 percent of those surveyed said they're saving enough for retirement, compared to 27 percent without a plan.

For servicemembers, McClelland pointed to the Thrift Savings Plan as one of the best avenues for jump-starting a long-term savings plan. She encouraged servicemembers who aren't already contributing to their TSP to start.

Even if servicemembers plan to separate after four years, they should contribute, Ms. McClelland said, since the funds easily can be rolled over to a 401K plan at their new job.

People also can explore savings bonds and savings accounts sponsored by credit unions and on-base banks, she added. Debt shouldn't be a deterrent, she said, because saving is possible in conjunction with knocking down credit-induced debt.

However, people should first sit down with a financial expert to determine the best track for their individual situation, she said.

The Military Saves Campaign also includes a Military Children Saves initiative that is aimed at building financial responsibility in military children and youth.

The Military Youth Saves initiative at Peterson AFB ended with a poster contest. Ms. Chris Fornander, the accredited Personal Financial Readiness program manager at the Airman and Family Readiness Center, announced the winner of the $100 savings bond, Ashlei Young. She won the 2011 Military Youth Saves Poster Contest on Peterson AFB, and her winning entry will be displayed in the Peterson AFB ENT Branch.

Ms. Fornander also acknowledged the donation by 5 Star Bank to the Peterson AFB Friends of Family Support Organization. This donation will be used to benefit local military members and their families as they work to improve their financial situations.

Financial readiness is vital in the military, Ms. McClelland noted, since it's tied so closely to mission readiness as one of the pillars of personal readiness.

"If you are more secure in your personal life, you're more able to attend to the mission at hand," she said.

This recognition has led to accredited personal financial managers being in every service family center, as well as personal financial counselors who work with state and community officials as part of joint family support assistance program teams, Ms. McClelland said.

For people who are geographically dispersed, the DoD's Military OneSource consultants can provide telephone counseling or refer people to a counselor in a community. Military One Source can be reached at (800) 342-9647 and the Airman and Family Readiness Center at 556-6161.

(Article adapted from original by Elaine Wilson, American Forces Press Service.)

Military saves week