Posted on Feb 3, 2014
Mandatory personal finance classes for service members?
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Part of my day job is as a wealth manager. I have helped countless soldiers as a volunteer to help get them started and I am surprised by the overall lack of financial literacy. It isn't on them, I think our education system can do a better job of it as well.
Do you think the military should make part of basic and the other courses mandatory personal finance training and encourage soldiers to budget, save, and invest wisely? There are options for this, but it isn't mandatory.
Posted 11 y ago
Responses: 25
Sir, I think it's a great idea. I'm with the recruiting command, and I started scheduling a financial briefing for our Future Soldiers preparing to ship to basic training every quarter. Local institutions will do it free of charge and they would usually bring food too. I would tell them that they can't promote their institution because we can't show favoritism towards a particular company, and they were always fine with it. They would usually take a route like "If you decide to bank with us, here's my contact information". I think that's where it should start, because we are enlisting a lot of young adults who have never had their own money to manage. So I would bring someone in to give a class on balancing your account, writing checks, the difference between selecting Debit or Credit with your bank card, how to create a budget spreadsheet, different avenues of investment, etc. It could also be implemented as part of a unit's in-processing schedule for new arrivals, regardless of how long you've been in the service. I'm at 11 years and I know that I still need financial advice any time it's available!
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LTC David S. Chang, ChFC®, CLU®
Great idea, do the classes before they even get in since they collect a pay check from day one!
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SSgt George Brown
I think that the save 1000 dollars a year for the first 8 years and never have to save again would be a great thing to instill in the young enlistees. That is an amazing thing.
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I've seen it pop up as SST and during NCOPD. I think it should actually be an official Army curriculum taught by SQI 8 qualified personnel; it should be added to 350-1 as initial and then refresher as needed based on command discretion.
Ad hoc or outside agencies kill the consistency of the message and often bring agendas/POVs that are not organic to the DOD.
Ad hoc or outside agencies kill the consistency of the message and often bring agendas/POVs that are not organic to the DOD.
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YES. YES. YES. I wish the military were more willing and open to requiring Financial Peace University. You may not be able to make it a requirement in the Civilian World, but that's the great thing about the military - you CAN make a class like this mandatory. And they should. So many young (and older) service members find themselves in a world of hurt in debt - payday loans, credit card debt, etc.... because they get wrapped up in the moment and don't learn any better.
I'm sure there are other Financial Classes other than FPU, but I'm happy to admit that I'm biased. FPU changed my whole life. I cannot wait to start our next class at my church in 2 more weeks. I've heard from a few soldiers at Ft Benning who might be attending. Shoot, if Ft Benning would let me come on base and facilitate it, I totally would!
I'm sure there are other Financial Classes other than FPU, but I'm happy to admit that I'm biased. FPU changed my whole life. I cannot wait to start our next class at my church in 2 more weeks. I've heard from a few soldiers at Ft Benning who might be attending. Shoot, if Ft Benning would let me come on base and facilitate it, I totally would!
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SSgt George Brown
Because it might offend non Christians. BUT, it could be done as part of a chapel extension for volunteers only.
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PO3 (Join to see)
Oh. *scratches head*. Okay....
Still would be great if more bases and commands would offer it though. You get enough people to go through because it's offered and because they are interested, and eventually it spreads like wildfire.
The military should definitely do something though....I don't know if it needs to be something that's taught shortly after (or as a part of) boot camp, but I wish I had been taught to do better with my money before I did so badly (while in the service).
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LTC David S. Chang, ChFC®, CLU®
Aloha Amanda, Dave is great and I used to be an Endorsed Local Provider for Dave Ramsey. I have taught his class before too. The reason there is a conflict of interest is that if you use his services, indirectly and directly he gets paid. So ELPs pay to be a part of his network and he recommends these ELPs based on his standard.
Dave talks about his books which are great, but he makes money when you buy them and recommends his books for his courses.
Also Dave recommends only certain type of products. I agree with most of what he says but disagree on using advisers that take a commission. I moved to a fee only model for my clients so I get no commission for any products. If I get commissions, I will be pushing those products even though it may not be best for the client. As a fee based adviser, there are not commissions, just a set fee based on assets under management so you can pick the best products available for a particular portfolio.
I am a big fan of Dave and glad he is there, but like others, he is there to make money, get people to buy his books, use his ELPs, and listen to his radio show. there is nothing wrong with that. I do the same thing.
The important thing is that for the military it be completely neutral and not push any product or service for any vendor. The Army doesn't make money with TSP or the SDP, but it is great that they offer it. Hope this helps!
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SFC Michael Jackson, MBA
The concepts, except his position on tithing and giving, are non-religion specific. A course with the financial concepts can be taught and made mandatory. It doesn't have be this particular course.
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