Money Smart

  • Published
  • By Maj. Brian M. George
  • 9th Civil Engineer Squadron commander
BEALE AIR FORCE BASE, Calif., --  Many people say the Air Force is a reflection of our American society and culture. I wonder if its due to this "American" culture, or our beliefs about personal freedoms and values, or just a society "taboo" passed down from our parents, that stops most Air Force leaders and mentors from discussing a major educational shortcoming in our members, personal financial planning. Historically, personal financial planning was taught by our parents and high schools i.e. have a budget, put your money in a savings account etc. However, it seems to have fallen by the wayside either due to relevance, put money in a savings account with 0.1% interest or educational reform.
 
Airmen are charged with being financially responsible and our Air Force leaders have spelled this out in the Enlisted Force Structure (AFI 36-2618). Most Airmen understand this concept... Airmen cannot be mentally ready to accomplish the mission if they are focused on paying bills or getting out of debt. But do Airmen know what to do with the rest of their paycheck? Do they know the basics of personal finances and planning? Bills paid for... check. Got Insurance (SGLI)... check. Planning for the future... now there is the issue... save a little or a lot of money for that rainy day? What about retirement? What about a nice house or car? How do I maximize those dollars that I do save? Traditional TSP, Roth TSP, IRAs, Roth IRAs, 529 plans, mutual funds, stocks, corporate bonds, public sector bonds, the choices are endless.

When I brought the topic up at a mentoring session ten years ago, I received nothing but blank stares. When I brought this topic up last year... I received blank stares but thankfully not as many as the first time. Everyone wants to be financial secure, just most Airmen just don't know where to begin. It's up to us as Air Force leaders, supervisors, and mentors... to help educate our Airmen. Don't let them down.

If you didn't understand the benefits of all the savings vehicles, especially Roth vs. Traditional TSP, I mentioned above, please contact the AFR&C Financial Services section x2683... it's free.