Tag Archives: financial readiness

Hmm, what to do with your tax refund? 6 tips for military families

Posted on April 15, 2013 | Leave a comment

Hmm, what to do with your tax refund? 6 tips for military familiesWill your family receive a tax refund this year? The average tax refund is around $2,800 and slightly more for direct deposit refunds. Even if your refund is more or less than the average, we have a few tips to make your money work for you.

Military families encounter fluctuations in household income for a variety of reasons including: deployment and training incentives; bonuses; loss of income from a spouse’s job; or cost of living adjustments after a military move. A tax refund may provide the funds you need to help account for the changes in household income. Here are some tips to consider:

  • Review your emergency savings funds. Do you have money set aside for unexpected expenses? Out of pocket costs for an upcoming Permanent Change of Station (PCS)? Consider starting or adding money to a designated emergency savings account.
  • Pay down debt. Use your refund to pay down or pay off a high interest credit card.
  • Contribute to your retirement plan. An extra contribution to your service member’s Thrift Savings Plan (TSP) or your own retirement account can go a long way.
  • Deployment savings. If your service member is deployed, consider adding your refund to the Savings Deposit Program. A total of $10,000 may be deposited each deployment and will earn 10% interest annually.
  • Save for college. If you have children, you can contribute to a college 529 savings plan. Going back to school as an adult? You can put your refund towards a 529 plan for yourself, too.
  • Don’t spend your refund before your receive it. Wait for your refund to arrive before you spend the funds. You can track the status of your federal refund online.

Before you are tempted to spend the extra money on a shopping spree, review your current financial situation. It may be helpful to talk to a financial counselor at your local military installation or through Military OneSource to help you decide how to put your refund to good use.

How will you use your tax refund? 

katiePosted by Katie Savant, Government Relations Information Manager at the National Military Family Association

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Military Saves: Set a Goal. Make a Plan. Save Automatically.

Posted on February 28, 2013 | Leave a comment

Military Saves: Set a Goal. Make a Plan. Save Automatically.The theme for Military Saves Week 2013 is more than just a theme; it’s the essence of a sound approach to savings, designed to help individuals take financial action. Set a Goal. Make a Plan. Save Automatically. Knowing what you want to save for, how to achieve it, and then automating the savings process will allow you to reach your savings goal.

Set a Goal

You can save more by having a specific goal in mind. Visualizing what you want to save for gives your savings a purpose. You may be tempted to spend your savings if it has no purpose. But once you have a goal in place, you know that taking money out of your savings is taking away from that ultimate goal. So what are you saving for? An emergency fund, a home, retirement, a car? Go viral with your savings goal! Take a photo of your goal and post it on our Association’s Facebook page or tweet it using the hashtag #MSW2013.

Make a Plan

Once you have your goal in place, make a plan of how you are going to save. To start, cut down on your spending and reduce high-cost debt. Next, keep track of what you spend and make a budget. Once you know where your money is going each month, you can cut down on unneeded spending and save the difference.
Don’t forget to keep your savings safe, secure, and growing. Banks, credit unions, and even the government offer a variety of financial products that can help you save.

Save Automatically

It can be hard to put aside money for savings. But there is an easy way to save money without ever missing it. Once you know how much you can save, make saving automatic. Use an allotment or automatically transfer a portion of your paycheck into a savings account.

We want to hear from you! Have you already set a goal? Made a plan or budget? Do you save automatically? Share what has worked for your family.

ccPosted by Christine Gallagher, Government Relations Deputy Director at the National Military Family Association

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Military Saves Week: Starting to save

Posted on February 27, 2013 | Leave a comment

Military Saves Week: Starting to saveI remember when my husband and I made our first concerted effort to save. He had just left for his first deployment and I decided I wanted to sign up for the Savings Deposit Program (SDP). Fresh off a pre-deployment brief, I wanted to put my newly found knowledge to good use and take advantage of this great savings opportunity.

A military member can deposit funds into a SDP account once he or she has been deployed for 30 days. The military member must be receiving Hostile Fire Pay. A total of $10,000 may be deposited during each deployment and will earn 10% interest annually. This sounded like an attractive option for us.

Although my intentions were good, we didn’t get a chance to set up the account before my husband deployed. I went to our local finance office and learned I would need a special power of attorney to set up the SDP account on my husband’s behalf. (My general power of attorney wouldn’t work.)

I didn’t let this setback derail us from our long-term savings plans. Instead, I researched products available through military banks and credit unions and settled on a money market account. Every other week I would take my paper paycheck (yes, I worked for a small employer who did not use direct deposit) and deposit half of my paycheck into our new money market account. I calculated that about half of my paycheck was the additional funds we received while my husband was deployed, which included the family separation allowance, hostile fire pay, and tax benefit.

By the end of the deployment, we had a good savings foundation! The most valuable lesson we learned was about financial discipline and how to save money. We successfully accounted for savings in our budget. It was no longer an afterthought, but a regular habit.

During Military Saves Week I encourage you to take the saver’s pledge and put that pledge into action.

My husband and I are faithful savers today. I look forward to the messages I receive from the Military Saves campaign in order to help find new ways to save and to stay on track.

What helped your family start to save?

katiePosted by Katie Savant, Government Relations Information Manager at the National Military Family Association and blogger at www.MilitaryFamilyCents.com, where this post originally appeared

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5 Easy Ways to Get Involved in Military Saves Week and Save Successfully

Posted on February 25, 2013 | 1 Comment

5 Easy Ways to Get Involved in Military Saves Week and Save SuccessfullyMilitary Saves Week (February 25 – March 2, 2013) is a chance for individuals to evaluate their saving status, take financial action to reach goals, and become part of a supportive environment of military savers. Everyone can take the Military Saves pledge, and if you’ve pledged in the past, you can renew your pledge and commitment to saving. Studies reveal that having a savings plan with specific goals can have beneficial financial effects, regardless of income level.

Here are 5 easy ways to get involved in Military Saves Week:

1. Take the Military Saves Pledge 
Pledge or re-pledge today! Those with a savings plan are twice as likely to save for emergencies and retirement as those without a plan. Join over 310,000 people who have already committed to save.

2. Assess Your Savings
Find out if you are saving in all the right places with this 12 step savings assessment.

3. Test Your Savings Knowledge
Take this savings quiz to reveal how much you understand about the realities of saving in America.

4. Share Savings Tips and Advice with Family and Friends
On Twitter and Facebook? Share your pledge and your best savings and financial tips with your family and friends. On Twitter, use hashtag #MSW2013. Get everyone to become a saver!

5. Share Your Savings Goal
We want to hear from you! What are you saving for? Post or tweet a photo of you with your savings goal to Facebook or Twitter. Download the “I’m Saving For…” sign and share your photo and savings goal today!

Military Saves Week is coordinated by Military Saves and is part of the Department of Defense’s Financial Readiness Campaign. Started in 2007, Military Saves Week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to evaluate their own saving status.

ccPosted by Christine Gallagher, Government Relations Deputy Director at the National Military Family Association 

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