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Financial readiness prevents financial disaster
Posted 2/15/2013 Updated 2/15/2013
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Commentary by Army Maj. Gen. Michael Garrett
U.S. Army Alaska Commanding General
2/15/2013 - JOINT BASE ELMENDORF-RICHARDSON, Alaska -- As a commander, readiness is one of my top priorities. I am responsible for making sure our units have the personnel, equipment, training and resources necessary to complete their assigned missions.
My first twelve years in the Army were spent with the Ranger battalions, where I received what I consider the educational equivalent of a PhD in training management. The experience and knowledge I acquired as a junior officer became the foundation for all that I have accomplished in my career. The principles I learned for managing the training of a platoon are still the base principles I use to manage the training of a division-level command.
I believe if our leaders instill proper principles into our Soldiers, these principles will help ensure their continued success throughout their careers and lives. Once a Soldier has been trained to perform a task correctly, they will always know what right looks like. This is also true for financial readiness. Leaders must train every Soldier on how to keep their personal finances in order. This will go a long way towards preventing personal matters and financial emergencies from impacting your unit's mission readiness.
I have seen Soldiers burdened with substantial debts endure life-changing consequences to their marriages, financial futures and careers. Stress caused by troubled finances is a leading cause of divorce. Many troops don't realize bad credit, bankruptcies and large amounts of debt can prevent them from obtaining or keeping a security clearance.
It is not uncommon for company commanders and first sergeants to be contacted by creditors seeking help to recoup debts from a Soldier. This is often the creditor's final effort before moving forward with legal action and possible court-ordered garnishment of wages.
Many Soldiers, especially first-termers, have never been taught how to create or manage a budget, what a variable percentage rate is or the true cost of credit. Soldiers who have never had consistent income before joining the Army frequently have the hardest time learning to manage their personal finances.
They often go from having very little spending money before Basic CombatTraining to regular paychecks and multiple credit cards at their first duty station. Without exercising financial restraint, these temptations can result in debts and financial consequences, which can trouble Soldiers for the rest of their lives.
Leaders should know which of their Soldiers have yet to file their 2012 taxes and, if necessary, offer them guidance on how to file. There are tax filing services available on base, which are free for Soldiers.
I recommend leaders encourage Soldiers with debt to use any tax returns to pay down the debts they already have rather than using the money as a down payment on a new debt. This is good advice for leaders to give Soldiers who receive permanent fund dividends as well.
Commanders have tools available to them for educating themselves and their Soldiers on financial readiness.
Army Community Service is a wonderful resource staffed with professional budget educators who offer free classes and training to our Soldiers and their Families. ACS offers monthly personal financial readiness classes that are mandatory for every first-term Soldier to attend.
If Soldiers haven't received this training prior to arriving in Alaska, I expect leaders to make sure they get the training here. ACS also provides training and expertise on financially planning before permanent change of station moves that every junior enlisted Soldier must take advantage of when they receive orders to leave Alaska. Leaders at every level must familiarize themselves with all the other training programs available through ACS.
We must all recognize financial readiness is mission readiness. We have a responsibility to be as prepared as possible to defend this nation. That applies down through every echelon of command to the individual Soldier.
I enjoy every day I get to spend wearing this uniform and serving our Soldiers. I would like to express my gratitude to each of you for volunteering to serve the American people and defend our Constitution.
The life of a Soldier is a demanding one and I appreciate the sacrifice each of you has made for the honor of serving in our Army. I ask that you continue to give your best every single day and I promise to do the same.
Arctic Warrior! Arctic Tough! |
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