NAS Oceana’s MILITARY SAVES 2009

NAS Oceana’s MILITARY SAVES

2009

Truth or Myth Debts Dangers 70%, 20%, or 10% Sources of Help Kill Debt, Build Wealth

Military SavesMilitary SavesCATEGORIESCATEGORIES

MILITARY SAVESTruth or

MythDebts

Dangers70%, 20%,

or 10%Sources of

HelpKill Debt –

Build Wealth

200

300

400

500

100 100

200

300

400

500

100

200

300

400

500

100

200

300

400

500

100

200

300

400

500

TRUTH OR MYTH $100

$

You should always close credit card accounts you no longer use.

WHAT IS . . . A MYTH?

Save and set aside an emergency fund to cover at least three month’s worth of your

expenses.

WHAT IS . . . The Truth?

TRUTH OR MYTH$200

$

The percentage of stock in your portfolio should equal 100 minus your age.

TRUTH OR MYTH$300

WHAT IS . . . A Myth?

$

TRUTH OR MYTH$400

WHAT IS … a Myth?

Always go with a fixed-rate mortgage – especially when interest rates are rising.

$

Truth or Myth $500

WHAT IS . . . The Truth?

Save 10% of your net income

$

Debt’s Dangers $100

$

Using your credit card to get money at an ATM at a much higher rate than a credit

purchase.

WHAT IS … a Cash Advance?

Debt’s Dangers$200

Having legal responsibility for someone else’s loan if they default on the payment.

WHAT IS . . . Co-sighing for a loan?

$

Debt’s Dangers$300

You are four times more likely to be struck by lightening than to get rich by this

method..

WHAT IS . . . Playing the lottery?

$

Debts Dangers$400

Taking a short term loan at 200% to 700% interest.

WHAT IS . . . A Pay-Day Loan?

$

Debts Dangers$500

Buying furniture and appliances, paying two to five times department store prices at

100% to 300% APR.

WHAT IS . . . Rent to Own?

$

70%, 20%, or 10%$100

$

At a minimum, the % of your monthly net income that should be allocated towards

Savings and Investments.

WHAT IS . . . 10%?

70%, 20% or 10%$200

At a maximum, the % of your monthly net income that should be allocated towards

living expenses.

WHAT IS . . . 70%?

$

70%, 20%, or 10%$300

At a maximum, the % of your net monthly income that should be allocated towards debt

repayment (not including a mortgage payment).

WHAT IS . . . 20%?

$

70%, 20%, or 10%$400

The financial investment entity that has an average return of 10% over any 30 year

period, for the last 100 years.

WHAT ARE . . . Stocks?

$

70%, 20%, or 10%$500

The financial tool used to determine if you are financially overextended with debt. (Hint: If this is more than 20% you are

overextended.)

WHAT IS . . . the Debt to Income Ratio?

$

$

The title of the point of contact in Navy commands who provides service members

with sources of help and budget counseling.

WHAT IS . . . The Command Financial Specialist (CFS)?

SOURCES OF HELP$100

The organization where sailors and military family members can attend financial, parenting and resume writing classes at no cost.

WHAT IS . . . Your Fleet and Family Support Center? (Which offer Skills for Living

programs. Class schedules are found in the SIGNAL newsletter.)

SOURCES OF HELP$200

$

Daily Double:Daily Double:

SOURCES OF HELP$300

The place where sailors and marines can go in an emergency, to get financial grants or

interest free loans.

WHAT IS . . . The Navy - Marine Corp Relief Society?

$

The on-base military resource where sailors can take their money, get free investment

advice and counseling.

WHAT IS . . . A Military Bank, Bank of America or Federal Credit Unions like NFCU,

ABNB?

SOURCES OF HELP$400

$

The place where sailors and marines can go to have a will prepared.

WHAT IS . . . The Naval Legal Services Office?

SOURCES OF HELP$500

$

KILL DEBT-BUILD WEALTH$100

$

The average American is likely to spent 30% more using this method of paying for

insignificant purchases like fast food or soda then when using cash.

WHAT IS . . Using a credit card?

KILL DEBT-BUILD WEALTH $200

A secured loan requires ...

WHAT IS . . . “collateral”? (Savings, or other real property considered

“security”.)$

KILL DEBT-BUILD WEALTH $300

The maximum allowable annual contribution to an individual IRA for a saver under the age

of 50.

WHAT IS . . . $5,000 in 2008, ($6,000 if over 50 years old)?

$

Daily Double:Daily Double:

KILL DEBT-BUILD WEALTH $400

The way to get money, but having to pay taxes and a 10% penalty.

WHAT IS . . . Taking an early withdrawal for an IRA or 401(k)?

$

KILL DEBT-BUILD WEALTH $500

This is an advantage of a mutual fund.

WHAT IS . . . Automatic reinvestment of income, deferred sales charges or

diversification?$