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Department of Defense Launches Financial Readiness Campaign
Washington, D.C., May 8, 2003 - The Under Secretary of Defense, Dr. David S.C. Chu, will co-host the announcement of the DoD Financial Readiness Campaign with the Under Secretary of Treasury, Mr. Peter Fisher at the Treasury Building, Cash Room at 1:00 - 2:00 p.m. In attendance today are the Service Assistant Secretaries, equivalent leadership from federal agencies, and chief executive officers/presidents/chairmen of partner organizations.
Personal finance has been an important issue to the Department of Defense in the past, with each of the Military Services providing financial education and financial counseling to aid Service members and their families. Even with this support, approximately one in four Service members, in grades E1 - E4 (age 18 - 21), consider themselves as having trouble making ends meet. These problems are manifested in Service members having difficulty paying bills on time, over extending themselves when using credit, and maintaining low levels of savings. As with private sector employment, where personal financial problems can cause absenteeism and reduced productivity, personal financial difficulties in the military can lead to mission related problems if not resolved.
The Department has established the Financial Readiness Campaign to give Service members and families a chance to learn more about personal finances and to encourage them to better manage their money. The Campaign is directed towards junior enlisted Service members who are most at risk, and spouses of Service members since they are less likely to have received the personal finance information that Service members received as part of their training.
In keeping with the President's Management Agenda, the Department has partnered with the public and private sector for answers, and has established memoranda of understanding with several federal agencies and nonprofit organizations. These organizations have pledged to support the efforts of personnel at the installation who are responsible for providing financial education and financial counseling to Service members and their families. The current list of contributing agencies and organizations includes the Department of Treasury, Department of Labor, Security and Exchange Commission, Federal Trade Commission, Federal Reserve Board, U.S. Department of Agriculture Cooperative
State Research Education and Extension Service, Federal Deposits Insurance Corporation, Freddie Mac, Federal Citizen's Information Center, Social Security Administration, Defense Credit Union Council, Association of Military Banks of America, Army Emergency Relief Society, Air Force Aid Society, Navy and Marine Corps Relief Society, Better Business Bureau, Consumer Federation of America, National Endowment for Financial Education, National Foundation for Credit Counseling, American Savings Education Council, Jump Coalition for Financial Literacy, North American Securities Administrators Association, Moneywise with Kelvin Boston, Women's Institute for Financial Education, InCharge Institute, and the National Military Family Association.
The Financial Readiness Campaign is expected to continue over several years, with the Department refining the approach and the partnerships over time. The overall objective will remain the same, to increase personal readiness by reducing the stressors related to financial inability and poor financial habits. This campaign will seek to increase awareness and abilities, increase savings and reduce dependence on debt, and increase protection against predatory practices.
The objectives of this Campaign support a broad initiative developed by Under Secretary Chu to define a new social compact between the Department of Defense and Service members and their families. This Social Compact promotes the advancement of the military community through the reciprocal ties that bind Service members, the military mission and families by responding to their quality of life needs as individuals and as members of the larger community. The opportunity to support the financial well being of Service members and their families is seen as an important pillar of the Social Compact, supporting both mission readiness and quality of life.
