Joseph Parrinello served his country during three wars – World War II, Korea, and Vietnam. He met and married Margaret Donnelly while serving in England. They married on December 27, 1957. She followed him to all his assignments and did what many wives did at that time: she took care of the children and managed the household.
In 1972, Joseph retired after 28 years of service. His chief concern in life was making sure Margaret, who was 14 years younger than he and only ever worked in the home, was taken care of if he died. After a lifetime of investments, the Defense Department denied his beloved her survivor benefits because of one wrongly checked box.
After many years together, they divorced in 1991. There was no love lost, Margaret married Joseph at 19 and had just never really known life without Joseph. He still loved her and she was still the mother of his children, so she remained the beneficiary of his Survivor Benefit Plan, even though they were no longer married. During their time apart, Joseph gave his beloved money every month to take care of her, even after the children came of age and left home. It was a surprise to no one when they remarried in 2006. Joseph was 83 and Margaret was 69.
By that time, Joseph had battled cancer and kidney failure. His overall health declined for years, but he never filed a disability claim with the Department of Veterans’ Affairs because he only wanted what he was due and felt the VA didn’t owe him anything. So he lived on Social Security and his retirement pay as an E-7 with 28 years in service.
Throughout his retirement, Joseph paid 15 percent of his income to take care of Margaret. He had an allotment taken out of his retirement to cover her in the event of his death, resulting in several decades of investment. His survivor benefit plan listed her as the sole beneficiary. At 83, he was tired, ill, and not as sharp as he once was. He didn’t change Margaret’s status from “former spouse” back to “current spouse” on the SBP form because he didn’t think he had to. In his mind, his Margaret was both former and current, and was going to be okay.
When he died at age 91 in December 2014, his daughter Lisa, also an Air Force veteran, tried to help her mother claim her survivor benefits. They initially filed in December of 2014 – but the Defense Finance and Accounting Service said they didn’t receive Margaret’s claim, though DFAS was sure to stop Joseph’s retirement pay and take back pay for part of the month of December. So Margaret refiled in January and was told it takes about six weeks to receive benefits.
After six weeks, Margaret called DFAS to check the status. The answer was the claim was “still processing”. When her daughter Lisa called in February 2015, the claim was “still processing.” In March 2015, Lisa was told her mother “will get paid by the end of March.” In April, the claim was “still processing” and DFAS asked Margaret to send more documents to support her claim.
Lisa, frustrated, contacted her congressman, Mark Sanford. Sanford’s office was able to get an answer from the Defense Department. On June 1, 2015, Margaret was officially denied her benefits because the form had “former spouse” checked even though she is both the former and current spouse and her name is also on the form stating her as beneficiary. The family was told the form needed to be changed through the Air Force Personnel Center. The change (if approved) can take up to 18 months but the Air Force is “backlogged and must go in order.”
As Margaret waits for the Air Force to check a different box, she’s about to lose the house she shared with Joseph, their car, their treasured possessions, and the last wishes and lifetime work of a 28-year Air Force Master Sergeant, who only wanted the love of his life to be taken care of when he died.
The Defense Department did not tell the Parrinellos where Joseph’s 20-plus years of investments went or where they will go if they’re not given to Margaret.
In a report released earlier this summer, the Department of Defense Inspector General has determined that the Army’s finances are a world-class mess. Reportedly, the service made $2.8 trillion in adjustments to make their books balance just in one quarter of 2015 in spite of the fact that the entire defense budget for that fiscal year was $585 billion.
According to Reuters, the Army’s books are so jumbled that they may be impossible to audit – and the Army is facing a September 30, 2017 deadline to be ready for one. The harsh IG report concluded the Army “materially misstated” its financial statements for 2015.
Making the task of squaring the Army’s books harder is the fact that over 16,000 documents have vanished from the Army’s computer system. The Defense Finance and Accounting Services (DFAS), the Pentagon’s primary agency responsible for accounting services, routinely changed numbers without justification at the end of the year, something employees of that agency referred to as the “grand plug.”
“Where is the money going? Nobody knows,” DOD critic and retired analyst Franklin Spinney told Reuters.
The Army has taken issue with the IG report, claiming that the total discrepancies total just under $62.5 billion. An Army spokesman said, “Though there is a high number of adjustments, we believe the financial statement information is more accurate than implied in this report,” that and that the Army “remains committed to asserting audit readiness” and that steps are being taken to root out the problems.
Starbucks Armed Forces Network, a private group within the company of Starbucks, released a statement yesterday asking that those calling for Starbucks to hire 10,000 veterans instead of refugees check their facts.
Recently, Starbucks came under fire for announcing that they would hire 10,000 refugees. The general reaction was anger and calls for boycotts of Starbucks until they vowed to also hire 10,000 veterans.
The problem with that? Starbucks vowed to hire 10,000 veterans in 5 years way back in 2013. And they’re ahead of schedule.
One of the many internal groups at the coffee giant, Starbucks Armed Forces Network, penned a note to their customers to explain why the anger at the refugee program was misdirected.
The note, simply signed by The Men and Women of Starbucks Armed Forces Network (AFN), began, “We write to you today as representatives of the thousands of veterans and spouses who currently work for Starbucks Coffee Company.”
The writers went on to express their gratitude to their customers and then they moved right into addressing the refugee and veteran initiatives.
“The false and inaccurate statements [about the veteran hiring initiative were] deeply troubling to those of us who’ve served,” the group wrote.
The statement described how the CEO and his wife, Howard and Sheri Schultz, had visited military installations around the country to learn more about how they could advocate better for veterans and military spouses after announcing the veteran hiring initiative in November 2013. The couple invested their own personal funds into “plans for transitioning service members,” according to the group.
“We respect honest debate and freedom of expression,” the statement read. “But to those who would suggest Starbucks is not committed to hiring veterans, we are here to say: check your facts. Starbucks is already there.”
The 5 year initiative has only used about 60 percent of its time, but has met 88 percent of its goal. This means that, if they continue at this rate, Starbucks will surpass their initial goal of hiring 10,000 veterans by 2018 by 4,600 veterans.
The company also offers Military Service Pay to employees who have to report for National Guard or Reserve assignments. Eligible partners can receive up to 80 hours of paid time to fulfill their reserve service obligations yearly.
Starbucks provides a Military Allowance to eligible employees that are called to active duty, as well.
Starbucks has made a name for themselves as a veteran friendly company, even being awarded Gold status by G.I. Jobs in this year’s annual “Military Friendly” list.
Hardship duty pay is a compensation in addition to base pay and other entitlements for service members stationed in or deployed to locations where the living conditions are significantly below those in the continental United States, the mission lasts longer than a typical deployment or requires specific types of work (i.e. recovering bodies of fallen military members in other countries).
Under specific circumstances, some or all of your hardship duty pay may be tax free. For more information on what is taxable and what isn’t, consult your financial advisor.
There are three different types of hardship duty pay: location, mission, and tempo.
1. Hardship duty pay – location, or “HDP-L,” is paid to service members who are outside of the continental United States in countries where the quality of life falls well below the standard of living that most service members who are in the U.S. would normally expect. Service members who also receive Hostile Fire/Imminent Danger pay of $225 per month only rate $100 a month for HDP-L. Find out if your OCONUS station is on the list.
Who: All service members who are executing a permanent change of station (PCS), temporary duty (TDA/TAD/TDY), or deployment to a designated area.
How much: The rate is paid out in increments of $50, $100, and $150 per month, depending on the level of QoL at that location as determined by the Department of Defense.
Hardship duty pay – mission, or HDP-M, is designed for hardship missions.
Who: All service members, officer and enlisted alike.
How much: $150 per month, max.
Hardship duty pay – tempo, or HDP-T, is for service members operating at a higher tempo for longer times, like during extended deployments or when service members are deployed longer than a set number of consecutive days. The Navy sets that number at 220, for example.
Who: All service members, officer and enlisted alike.
Before my husband retired from the Air Force, a co-worker asked if I was ready for his retirement. She, an ex MilSpouse, insisted that the transition to the civilian world was going to be hard.
I told myself I had never fully immersed myself into the military way of life. After every PCS, I found a job in the civilian world and made friends outside the military gates. I did not feel the change was going to be that drastic or difficult.
Two years after my husband’s retirement I now know how right she was. These are the things I wish I knew then.
3 Things I Wish I Knew About Military Transition
1. Consider where you plan to live after retirement. When planning for retirement, I recommend that your family consider living near a military installation. You really don’t realize how important all the perks of living near a base are until you leave the military.
We all have heard of the safety net — this invisible shield that protects all military families from stressors, financial hardships, and provides support during deployments and emergencies. I never fully took advantage of this safety net, but I came to appreciate it when my husband retired.
We retired an hour from the nearest base and suddenly I missed the camaraderie that comes with living near one. I missed running to the commissary and knowing it wouldn’t break the bank. I missed the safety of living on a military base. I knew my family was surrounded by some of the bravest in the world.
Also, it is harder to participate in transition services and career counseling. I no longer live in a community that encourages military spouses during transition, especially in the job hunt. I had thought I would not miss all of these safety net services because I had sometimes opted out of them. I know now retiring close to a base would have made things so much easier.
2. Take time out for vacations and alone time. The stress involved in the transition from the military to civilian world actually surprised me. Not only is the camaraderie gone, but also the adventure that comes with being a military spouse.
Whenever things were too stressful, there was always some new place to travel to and explore. There was always the anticipation of the next assignment. MilSpouses, for the most part, are independent. Being in charge of everything while the military person is deployed cultivates independence. We don’t need help, right?
But do not hesitate to ask for assistance or even a few minutes of alone time. A week after the moving truck dropped 200 boxes off at my house, my sister had heart surgery and came to live with us. l should have asked for help then, from family or neighbors to open boxes or just watch the kids when I took a few minutes for myself.
Throw your independence to the side. If you need help with anything, during the transition, ask for it. You will be able to better deal with the difficulties that always come with the move. Take a break, or take a vacation. I have discovered that you and your spouse need to find out who you are without the military. The kinks in your relationship that were put aside due to deployments or a PCS, will now have to be dealt with.
Take time and breathe.
3. It is important to get involved in your community. The military community made it easy. During deployments, moving, and emergencies, someone was always there to assist. Sometimes it was just the person next door who was going through the same thing. Sometimes it was the squadron commander or base chaplain. Information on support groups, activities and financial assistance was always readily available. As a spouse it wasn’t hard to stay informed about events and activities.
It is important that you form these same kinds of bonds in your civilian community. It will be harder. No one will have your name on a list and ask you to the next squadron picnic.
I suggest you become involved in military charities or organizations. Find a church that all members of your family are comfortable with. Volunteer. Use social media to connect to the local community.
While you may be tired and stressed, make even the smallest of efforts to engage in your new community. It will make things so much easier during the adjustment. Create your own safety net.
Amy is the spouse of a recently retired service member who spent 23 years in the Air Force. She currently works as a full-time mom, freelance writer, and part-time baker. During the active duty years, she worked as a preschool teacher, librarian, bookseller and SEO specialist. She currently lives in North Carolina and enjoys traveling and volunteering in her new community.
For years now, Russia has been laser-focused on insulating itself from an external economic shock.
It may have just sparked one.
In an unexpected move on March 6, Russia rejected a call by OPEC countries to further cut oil production in order to help prop up prices amid sagging global demand for energy due to the coronavirus.
The decision broke three years of cooperation under an arrangement called OPEC+ and stunned participants at a meeting in Vienna, not to mention some of Russia’s own oil executives — one suggested the move was “irrational” — and governments from the Middle East to the West.
OPEC leader Saudi Arabia swiftly responded to the snub by announcing it is no longer obliged to hold back production, causing the largest single-day drop in the price of oil in nearly three decades and sending global stock markets and the ruble tumbling. Why?
One potential answer: President Vladimir Putin wanted to punish the United States by putting severe pressure on the U.S. shale-oil industry, which has sold millions of barrels of oil while Russian companies kept production down under the existing OPEC+ agreement.
“The Kremlin had decided that propping up prices as the coronavirus ravaged energy demand would be a gift to the U.S. shale industry,” Bloomberg News reported. The acerbic spokesman for Russian state oil giant Rosneft, Mikhail Leontyev, suggested that was at least one of the motives, telling the agency: “Let’s see how American shale exploration feels under these conditions.”
Rosneft CEO Igor Sechin, an old and close Putin ally, has long been said to be chafing under the existing OPEC+ production limits, and was widely seen as playing a role in the decision to reject further cuts.
Some analysts played down the idea that the Kremlin was out to get U.S. shale, however, saying that Russia’s coordination with OPEC+ was fragile to begin with and that Moscow and Riyadh had different views of the current volatility on the global oil market.
Whatever the reasons, it’s a risky move for Moscow at an uncertain time.
The oil price collapse stoked by Moscow’s move and concerns about the effects of the coronavirus on a slew of industrieswill hurt Russia’s economy in the short-term, and there is no guarantee that it can knock out U.S. shale in the long run, analysts said.
The United States has been a beneficiary of the high prices maintained by the OPEC+ output cuts over the past few years, overtaking Saudi Arabia and Russia — now Number 3 — as the world’s largest oil producer.
As the coronavirus ravaged the Chinese economy and hit others around the world, slashing oil demand, Saudi Arabia lobbied for OPEC+ to cut another 1.5 million barrels at the March 6 meeting in Vienna. Russia recommended maintaining the existing cuts. OPEC+ — a 24-member group consisting of OPEC nations plus non-cartel members like Russia — first agreed to oil production cuts in 2017.
Saudi Arabia’s announcement that it would hike production sent the price of U.S. crude oil tumbling by 25 percent on March 9 to a low of a barrel. Prices gained back some of the losses on March 10 but were well under for U.S. and the global benchmark, Brent Crude.
Some U.S. shale producers have a break-even price of a barrel or above, putting them in a vulnerable position, said Chris Weafer, an energy specialist and founder of Moscow-based consultancy firm Macro-Advisory.
Oil producers in Saudi Arabia and Russia have lower production costs, enabling them to weather the price.
“There are three parties facing off against each other — Russia, Saudi, and U.S. shale — and it really is a case of who blinks first,” Weafer told RFE/RL.
Several analysts said that in the short-term, Russia is in the strongest position among those three players.
“The impact of this price crash on U.S. shale companies is going to be pretty devastating” in the short term and could result in a U.S. production decline in 2020, said Gregory Brew, a historian at Southern Methodist University in Texas focusing on energy politics and the Middle East.
Russian oil companies have some insulation. They are profitable at a oil price, helped by a free-floating currency, and the budget is protected for years to come.
The Kremlin’s conservative fiscal policy over the past few years boosted foreign currency reserves to about 0 billion and driven down the price of a barrel of oil necessary to balance the budget from above 0 to below .
At the current ruble rate of nearly 75 to the dollar, the budget can balance at per barrel, said Elina Ribakova, deputy chief economist at the Institute of International Finance in Washington.
Saudi Arabia’s budget break-even oil price is closer to and its foreign currency reserves have been declining amid a massive state spending program.
Riyadh not only faces budget pressure, but potentially investor pressure to cut production to keep the market stable, Sarah Ladislaw, a senior vice president at the Washington-based Center for Strategic and International Studies, said in a March 9 note.
Riyadh recently sold shares in state oil company Saudi Aramco, raising .6 billion in the world’s largest initial public offering. The shares are now below the price the investors paid for them.
But the U.S. shale industry has shown resilience in the past and is likely to do so again, analysts said. Low oil prices lead to consolidation, which should make companies more competitive in the longer term, Brew said — the opposite of what Moscow may be angling for.
Saudi Arabia failed to achieve the goal of shuttering the U.S. shale industry several years ago: The producers improved their efficiency in response to price pressure, driving down their own production costs.
Unlike large onshore or offshore oil fields that can take years to develop, shale fields can start producing in weeks, said Rauf Mammadov, an energy analyst at the Middle East Institute in Washington. And the biggest U.S. oil companies, which are less vulnerable than smaller outfits, are investing more into shale.
“It will not impact the shale industry in the long run,” Mammadov told RFE/RL.
Meanwhile, the impact of the oil price drop is being felt globally, including in Moscow.
‘Very Unexpected, Irrational’
Russia’s already slow-growing economy could potentially contract this year if oil prices stay low for the rest of the year, said Ribakova. She previously forecast growth of more than 2 percent in 2020.
Russia is losing 0 million to 0 million a day at an oil price of rather than , said Leonid Fedun, the billionaire vice president for strategic development at Lukoil, Russia’s second-largest oil producer, which is not state-owned.
Fedun called the collapse of the Russia and OPEC+ agreement “very unexpected, irrational.”
That’s not the view at Rosneft, though. Sechin was the driver behind the Kremlin’s decision not to agree to additional cuts, Weafer said.
In June, Sechin accused the United States of using sanctions against energy-producing nations to make room for U.S. domestic production.
The United States has angered the Kremlin by imposing sanctions on Russian Baltic Sea export gas pipeline Nord Stream 2, delaying its completion indefinitely, and by slapping penalties last month sanctioned a trading arm of Rosneft for doing business in Venezuela.
In 2019, the United States supplied oil to Russia’s western neighbor Ukraine for the first time — as Kyiv seeks to reduce reliance on Moscow amid a continuing war with Russia-backed separatists in its east — while Belarus has inquired about purchasing U.S. oil as it seeks alternatives to Russian crude.
Rosneft will increase production by 300,000 barrels a day following the exit from the agreement with OPEC+, Bloomberg reported, citing unidentified company officials.
Mammadov questioned the notion that Russia is targeting the U.S. shale industry.
The abundance of global supply, while largely driven by the United States, is also due to greater output from Canada, Brazil, and other non-OPEC countries, some of which have high-cost production and will be impacted, he said.
“This is more the outcome of the failure of the negotiation rather than a premeditated strategy or tactic” to crush U.S. production, Mammadov said. “There are too many global unknowns at the moment and that is the reason why Saudi Arabia and Russia could not agree on cuts.”
If the spread of the coronavirus retreats globally, leading to a pickup in economic activity and oil demand, the tensions between Russia and Saudi Arabia will ease as the question of greater cuts subsides, Mammadov said.
Another factor potentially limiting the depth of the price war is the Kremlin’s determination to maintain the political influence it has achieved in the Middle East in recent years, Weafer said.
That greater influence was on display in October 2017 when Saudi Arabia’s King Salman traveled to Moscow, the first-ever visit by the nation’s leader to Russia.
“The Kremlin will want to try to get back to the negotiating table because the political relations” with Saudi Arabia are “very important,” Weafer said.
What are the most important lessons to teach children about money? It’s a good question to consider, particularly because, thanks to a distinct lack of a broad financial literacy curriculum in schools, it falls on parents to be the ones who instill the core concepts of spending, saving, and handling money in general. While there are certainly lessons all parents should be teaching kids about money, we wondered, what do financial planners, accountants, and others who work in the financial industry teach their kids about money? What concepts are essential and how do they distill them down so they can be understood by, say, a seven-year-old? That’s why we asked a broad array of financial professionals, “What lessons do you teach your kids about money?” The varied responses include everything from envelope systems and understanding wants versus needs to the creation fake debit cards and engineering simple lessons about compound interest. All provide inspiration and instruction on how to help kids get a head start on the road to financial success and serve as a reminder that it’s never too early to begin teaching kids about money.
Try the Sticker Chart Reward System
“We use a sticker chart reward system with our young ones, who are in Kindergarten and second grade. You get a sticker for doing homework, practicing, household chores, and the like. After earning 20 stickers each child then gets to pick out a toy, experience, goodies, etc. of their choosing (up to a $ value). This is a foundational value in our household; to instill that effort and hard work is required to earn many of the ‘wants’ in life. And that it takes time.” — Ronsey Chawla, Financial Advisor at Per Sterling Capital Management.
Incorporate Financial Topics into Everyday Life
“This can be as simple as taking my kids to the bank to open a checking/savings account, involving my two kids — I have a 14-year-old son and 11-year-old daughter — in household budgeting conversations during a trip to the store, or planning for a family vacation. It’s important to share lessons and what you learned from your experiences with money management, with the depth of that conversation being up to your individual family. It’s also a good idea to start them saving early. Developing smart saving habits is the first step to becoming money-wise. Encouraging children to contribute a realistic amount to savings, even if it’s just a month, is an easy way to put them on the right track for future financial success.” —Daniel Cahil, SVP, North Dallas Bank Trust Co.
Trust the Lemonade Stand
“With my own kids, who were four and six at the time, we opened lemonade stands, as cliché as it may be. It teaches them literally the fruits of their labor. The help made the lemonade, with real lemons, at every step, until they have the product ready for market. They learn the lessons of “location, location, location,” understanding that where they set up can make a big difference in the traffic they can expect. Setting up on the corner brings some traffic, but not nearly as much as by a nearby field on a hot day where a bunch of kids are at soccer practice.
When they’re done, they bring their profits back home and count it up. This helps them identify and understand what different coins and paper currency mean. They also have piggy banks that are broken up into four different chambers – save, invest, spend and donate. This helps them understand the different utilities of money, immediate gratification, delayed gratification and being a contribution to others.” — Chet Schwartz, RICP, registered representative with Strategies for Wealth, a Financial Advisor with Park Avenue Securities, and a Financial Representative of Guardian Life Insurance
Teach Them to Save — But Also Enjoy the Rewards
“To clarify, this all starts with being responsible, working hard, and earning some dough. But this particular piece of advice is about what I do with that earned money. When I come into some kind of bonus or non-recurring income, I always, without fail, carve off some small-ish amount of that bonus for me, my wife, and my daughter, and we all go out together and buy something fun for ourselves, something that we would not otherwise have bought because we thought it was frivolous or hard to justify. We save the bulk, but the rule is that we have to spend that smaller allocated amount on something fun, and we have to do it together as a family.
This is important to me because one, if you don’t enjoy some part of your money “now,” you may never get the chance, and two, it gets us out, as a family, doing something that breaks the normal rules of saving and spending. I’m all about saving of course, but I’m also about enjoying the rewards of hard work, and that’s what this is really all about. If you don’t treat yourself well, you sure as heck shouldn’t expect anyone else to.” — Dan Stampf, VP, Personal Capital Cash
Use “Skip Counting”
There’s more than one way to count to 100. You can take the long way, starting with the number one. Or you can also count by twos, tens, twenties, even fifties to get there faster. Learning to “skip count” is an important precursor to developing fluency in calculation, number sense, and the basis for multiplication and division — not to mention counting money. Just pour a bunch of coins on the table and put them into piles by coin type (pennies, nickels, dimes, and quarters). Work with your child to “skip count” using different coins and values, reinforcing what they’ve learned. For example, ask them if they notice any patterns (e.g. while counting by 2s, 5s, and 10s). If “skip counting” is still too complex for your kids, continue practicing by changing the number of coins they are counting. That will encourage your children to figure out another total value.” —Jeremy Quittner, Resident Money Expert Editorial Director, Stash
Put Pocket Money to Good Use
“It’s important to teach your children about saving, and the potential benefits. I think a fun way to do this is with their pocket money. Say you give your child for the weekend. Once its spent, it is gone. But I like to introduce the offer that if, for every change they bring back at the end of each week, that change is matched from my money, and saved until it reaches 0, and they can buy themselves something special. For example, if they bring me change, I put aside for them, and this pot grows until it hits 0. The opportunity here is for the children to really think about what they are spending their money on, while also seeing that saving can result in a better purchase that is actually wanted at the end.” — Andrew Roderick, CEO of Credit Repair Companies
Use The Token Economy with Toddlers
“Make money fun. Toddlers can start to experience a ‘token economy’ by pretending to play in grocery stores or banks: games that can actively involve your child in playing and beginning to understand money. It’s also important to recognize that it may be more constructive to create other activities for older kids, by introducing them to easy-to-read financial books, like this one. Explain to them how your family approaches investing, paying for taxes, and seeking financial advice from an advisor” – Dillon Ferguson, CFP, Head of Product, Zoe Financial
Make the Concept of Prioritization Crucial
“We ask our three kids to do certain activities at home that are outside of their normal chores for which we compensate them with small amounts of money. This way they learn that to make money they need to put extra effort and work hard. They also learn that the money they make at home can be spent on a variety of different things, but we teach them about the concept of prioritization, since money is a scarce resource. Most importantly, we teach them that the best investment they can ever make is their own education, since education leads to better job opportunities and better quality of life.
We opened college savings accounts for all three kids via UNest and our older one is already contributing into her own account. We show her how money grows over time and teach about the concept of investing, compound interest and tax-free growth. In addition, we emphasize that lack of savings can lead to the student debt. Money that is borrowed can be very expensive and the need to pay off student loans would create setbacks in life and delay other important decisions like buying a house or starting a family. Putting a small amount aside each month and investing for education teaches our kids discipline and motivates them to think long-term.” — Ksenia Yudina, CEO and Founder of UNest
Teach them About Coins — And the Four Pillars
“I think that six years old is a good age to start teaching kids about money. A great first objective is teaching them about coins. While that might seem simple, it is not as easy a subject as you might think. Take a step back and think this through: Why is the big nickel worth less than the small dime? I think it’s fun to play games with kids once they understand the value of each coin by having them make different combinations to get to one dollar. 10 dimes. 20 nickels. Four quarters. One-hundred pennies. Fifty pennies and two quarters.
Start with teaching them one of the four pillars of financial literacy: save, spend/budget, invest and charity. For younger children, savings is the easiest as you can simply use a clear jar where they can put loose coins and see them build up. Remember to keep lessons age-appropriate and that developing money-smarts is not an exercise in trying to create the next Warren Buffet. It is about making them feel comfortable talking about money, understanding basic money vocabulary, and eventually starting good habits that will last a lifetime. You want to avoid the firehose method of teaching where you pile on too much information too soon. Rather consider using the drip-drip-drip method that starting them at a young age gives you plenty of time for them to build a great foundation.” — Thomas J. Henske, Partner, Lenox Advisors
Be Open About Your Financial Goals
“When my kids were younger, my wife and I agreed on an aggressive goal to pay off our house in a set number of years. When that goal was reached, we agreed to take the family on a trip to Disney World. We bought a Mickey Mouse puzzle, assembled it, and disassembled it in a way that for each id=”listicle-2646259052″,000 we reduced principal on the loan, we put so many pieces of the puzzle together. It created a visual representation of our progress. We explained our goal to the kids in terms they could understand so they saw the progress and the reward at the end after several years of work. While the kids now understand the financial side of the goal, it is the visual representation of the puzzle they recall most.” — Phil Kernen, CFA | Portfolio Manager, Mitchell Capital
Teach Them About Compound Interest
“As a financial planner and fastidious investor, my kids are being taught about compound interest at a young age. When my five-year-old daughter receives birthday money from our relatives, I show her how putting 25 percent of her money away can give her many more Barbies and dolls in the future. Would you rather buy one Barbie today, or be able to buy five Barbies later, I ask? Even a child can understand that by deferring some instant gratification today, they can enjoy greater luxuries later.” — Thanasi Panagiotakopoulos, Financial Planner, Life Managed
Never Say ‘There is No Money’
“Say instead, money is valuable and needs to be used wisely. Or money is not to be wasted. The reason is that children should not grow up with a limitation mindset but an abundance mindset while learning to be careful with money. Saying ‘there’s is no money,’ tells the child that when they get money in their hands, they can throw it away, and that’s not a good thing.” — Kokab Rahman, author of Author of Accounting for Beginners
Don’t Forget the Power of Delayed Gratification
“My children are 2 and 4 years old currently, and while it’s definitely too early to teach any significant money lessons to the two-year-old (aside from showing him how to put coins in a piggy bank), the four-year-old is another story. I recently tried this simple method of teaching savings and it worked well. Each night, I gave her a quarter for straightening up her toys before bed. She could choose to use a quarter to get a treat from the candy dish, but if she saved five of her quarters, we could do something special that weekend (go to the zoo, a favorite restaurant, etc.). Delayed gratification is such a valuable skill to learn at a young age, and I plan to use more complex ways to incentivize saving as she gets older.” — Matt Frankel, CFP, The Ascent
Turn Financial Mistakes into Teachable Moments
“We don’t pay our kids for daily chores like making their bed, feeding the dogs, or picking up after themselves. But I do pay them for mowing the yard (my 10-year-old) or helping cut firewood (all my children), things that are above and beyond their normal family contributions that they worked hard to attain. It’s also important to let them make mistakes. Recently my 10-year-old wanted to purchase a new movie release for .99, so I let him. The next day he wanted to buy a video game. I said sure pay me and he could buy it. He then realized he spent all his money on the movie. That’s the time to have a good conversation around it. Was it worth it? What could you do differently?” — Joel Hodges, CPA, Intuit, Tax Content Group Manager
Explain The Difference Between Needs and Wants
One of the most important money lessons I’m already teaching my young children is the difference between needs and wants. If she holds up something at a store — say, something from the candy aisle — I’ll ask ‘Do you need that, or do you want that?’ It took a few tries, but she got the hang of it. It can be helpful to set a firm cap on the ‘wants,’ such as one per week, while showing that we always take care of our needs.”— Matt Frankel, CFP, The Ascent
Introduce the idea of Money Early and Often
“At home, we value speaking openly about our financial lives and the value of saving such that our kids learn by example. A great way we teach our 4-year old about money is to have them understand the value of a purchase. The other day my son wanted us to buy him a new game for his iPad. To ‘convince us,’ we had him walk through the value in relation to the actually cost of the game. It’s never too early for your children to understand the cost of things. “- Andres Garcia-Amaya, Founder, Zoe Financial
Enlist the Envelope System
“Kids are never too young to learn how to handle money, one fun way for them to learn about money is to have them separate their allowances on what they want to spend. They can do this by having small envelopes and placing a certain amount from their allowances. This helps them learn about budgeting and the value of money when that certain envelope reaches the goal amount. Children are also allowed to have bank accounts, so it is good for them to have their accounts so that they can start learning to save early. — Leonard Ang, CMO, iProperty Management
Try The “Bank of Dad” Approach
“By the time my daughter started elementary school, she had a few chores each week for which she got a small allowance and she might get the odd bill in an Easter card from her grandparents. Instead of a piggy bank, we went forward looking and with the ubiquity of debit cards, I created ‘The Bank of Dad.’ Using an old hotel key card I made a make-believe Bank of Dad debit card and she opened an ‘account.’
At 12 years old and a long-time Bank of Dad customer, she was definitely ready for a real account. With our bank, the account was connected to a parent’s account so we had visibility into everything. At the start, we sat down and introduced the basics of a budget. We talked about understanding how much she “made,” how everyone needed savings for an emergency/rainy day, and how to also save for something “big” like those fancy new embroidered and bedazzled jeans she just had to have.
Now at 24 years old, my daughter came to me and asked if I could help her fix a spreadsheet she made because she wanted to try and pay off her student loans early, but couldn’t make the formulas work. If there’s anything that makes an accountant parent happier than hearing ‘Hey dad, will you check my spreadsheet?’ Turns out she was very close, but having her do the work and walk me through it, made fixing her error make sense to her and empowered her. — Gregg Gamble, Intuit, Lacerte Tax Content Development Manager
Everybody knows that the GI Bill is for college, but did you know you can use it for things other than a typical brick-and-mortar institution of higher learning? Here are four VA-approved ways you can use that benefit to better fit your goals in life.
*Note: While Veterans Affairs has confirmed that each of the schools listed here are approved institutions for using the GI Bill, you should always consult with your VA representative before making decisions regarding benefits.
1. Be the best bartender you can be!
While the GI Bill itself does not actually cover bartending school, try to find an accredited school with degree programs in culinary arts. If you can manage that, your course load will most likely include classes that involve various aspects of drinkology, an academic counselor at Culinary Institute of America told WATM.
The institute- which is best known as the CIA- is a VA-approved school.
2. Make Mary Jane your money making biotch
With the rise in the legalization of cannabis — both for medicinal and recreational purposes — across the country, professionals within the cannabis industry are going to be in high demand.
There are three different areas within the weed world to look at: chemists, horticulturist and dispensary managers.
Chemists and dispensary managers can be made through any traditional college route, but to be a cannabis grower, you can attend an horticulture school that offers degrees or certificates in horticulture.
3. Show everyone that you have the perfect face for radio
The Academy of Radio and Television Broadcasting offers an intensive course of study in radio and television broadcasting. Students at the Academy learn everything a normal college student learns in a four-year broadcasting degree- but in a much shorter time and without the requirement to invest in typical “core” classes.Core classes in math and science don’t typically translate into radio and television broadcasting, so the concept behind the school is to focus solely on broadcasting.
This cuts the typical four year program down to a mere seven months.
Tuition for the entire program is roughly $15,000.
4. Dive for buried treasure.
Well, be a commercial diver, anyway. The Divers Institute of Technology actually prefers veterans, and it is (and always has been) owned and operated by veterans.
The Divers Institute’s website claims, “you’ll get lots of hands-on, in-the-water training during your seven month program. We’ll teach you surface and underwater welding, cutting, and burning. You’ll learn diving physics and medicine, safety, rigging, salvage, hazmat, inland and offshore diving and more.”
If you’re lucky enough to have a budget that allows you to spend hundreds of dollars on fancy board games, you’d better act quickly — the collection will only be available until June 29, 2018, according to the website.
But if you don’t have a spare $1,500 lying around, you can always indulge your nostalgia with the classic Hasbro version of Connect Four that sells on Amazon for $8.77.
This article originally appeared on Insider. Follow @thisisinsider on Twitter.
If you sit down at your computer and search for, “Help with PCS,” you will find dozens of articles telling you what to do. Heck, the military even hands your spouse a list that says, “DO THIS.”
This is not one of those lists.
Instead, this is a list to help you de-crazy your brain in those weeks leading up to the Big Move. This is a list that reminds you that everything that needs to get done will, in fact, get done.
And, if it doesn’t? It probably wasn’t that important to begin with.
1. Do Not expect to de-clutter, organize and label every aspect of your life before the movers come.
We have big plans to separate and label all of the junk we aren’t willing to part with this time around, and we may even purchase the storage bins as a proactive move. But, let’s face it. Moving day comes at lightning speed, and you end up lugging all those loose pictures you planned to consolidate into albums. Try again next PCS.
2. Do Not become too attached to those expected dates for your Household Goods to arrive.
Riiight, 5-10 business days? Try two weeks, or a month. Or, half of it within three days, and the other half in six months after they locate it. The point is, bring enough clothes, enough toys and at least one pot for making macaroni and cheese with you to the new duty station, and you’ll survive until the movers get here. … Whenever that is.
3. Do Not bother doing all your laundry before they pack up the house.
If you plan on driving to the next duty station, toss the laundry basket of dirty clothes in your car and finish it while you sit in temporary lodging. Trust me, you’ll need something to do while you’re waiting for your spouse to out-or in-process. Candy Crush gets boring after a while.
4. Do Not plan too many activities the week of moving day.
You will be stressed out, you will be overloaded, and you will already be racking your brain to think of the million and one things you’re probably already forgetting. Plan your last Girl’s Night Out, or your kiddos last play dates the week before, and reserve those final days for the last-minute-details that always seem to pop up.
5. Do Not assume the movers will know not to pack certain things.
Even obvious things like trash, car keys and cat litter boxes. And, if they don’t have a problem packing cat feces, they’re for sure going to assume your child’s favorite stuffed animal that they tossed on the floor — the one that they have to sleep with or the world falls apart — is fair game. So, if you don’t want them to pack it, my best suggestion would be to take open a safety deposit box at the bank and keep all of the stuff you want to take with you in it. I assume that will prevent them from finding it, but no guarantees.
6. Do Not get hung up on what the movers put in which boxes.
As long as it all generally goes in the same room—or floor—of the house, just call it good. You’ll run yourself ragged trying to micromanage an entire house move, and annoy the movers at the same time. Remember, happy movers mean the potential for less damaged items.
7. Do Not sweat the small stuff.
That first PCS will make you crazy as you balance trying to clean out base housing to the housing office’s satisfaction and feeling helpless watching as the packers touch every single item of your personal effects and pack it away for who-knows how long.
A PCS only comes around … well, to be honest, they come around pretty often, which is why a “don’t” list is something we all need. Do Not fret; you learn something from each move, and by the time you make your final one, you’ll be a pro.
When Brittany Boccher was approached by retired Major General Kendall Penn and the Arkansas Secretary of State Military and Veterans Liaison Kevin Steele to help get proposed legislation passed to protect the retirement pay of military retirees, Boccher jumped at the opportunity to serve her current community.
Boccher, a mother of two and the spouse of a special agent with the Air Force Office of Special Investigations, began the task by hosting the General and the Military and Veteran’s Liaison at one of the Little Rock Spouses’ Club meetings, where the men presented the proposed legislation to the local military spouses.
The proposal specifically addressed the taxation of pay for military retirees. While active duty personnel in Arkansas do not pay a state tax, retired veterans’ pay is taxed.
That tax didn’t sit well with Governor Asa Hutchinson and Lieutenant Governor Tim Griffin, who have seen their state ranked at 48 in attracting and retaining working age military retirees and veterans.
“A lot of them will retire really young in their 40s, 50s, 60s. And what do they do? They have that steady income and start other businesses or they go work a new job,” Griffin said.
Hutchinson agreed, saying, “I believe it will help us to bring more military retirees here, welcome them back to Arkansas.”
Boccher committed to calling or emailing every state senate committee member directly to discuss his or her support for Hutchinson’s proposed tax initiative. Then she set out to round up military families that would benefit the most from the initiative in order to testify before the state house and senate committees.
Boccher, a business owner in Arkansas herself, told We Are the Mighty that her family reflected the target audience the state was hoping to attract with the proposed tax break.
“They were seeking a young family close to retirement to showcase that they would have a second career after the military. We are a 17 year military family, we’re young, and with two small children. We want to stay in Arkansas and we own a business in Arkansas.”
Boccher said her family “checked all the boxes” for what Steele and Penn wanted to present as the ideal family the state was trying to attract.
Penn asked Boccher to testify before the state house and senate committees.
As a result of her hard work and commitment to the legislation, Boccher and her family were invited to the bill signing ceremony earlier this month.
On February 7, Hutchinson released a statement that read, in part, “…beginning in January [Arkansas] will also exempt military retirement pay. This initiative will make Arkansas a more military friendly retirement destination and will encourage veterans to start their second careers or open a business right here in the Natural State.”
For her part, Boccher is proud of what she’s accomplished for veterans while simultaneously running an apparel company, a photography company, and a non-profit organization, the Down Syndrome Advancement Coalition.
Additionally, Boccher is the president of the Little Rock Air Force Base Spouses’ Club and the 2016 and 2017 Little Rock Air Force Base Spouse of the Year.
Boccher had this to say about her work, “The military community is resilient, adaptable, dedicated, independent, supportive, and resourceful, but most of all they can make a difference, their voice can be heard, and they can and will make change happen!”
Millennials as a group may be delusional about the future, but some are making good decisions with their money today.
Generally, many millennials have little to no credit-card debt, put a portion of their income toward retirement, and have a savings account, an INSIDER and Morning Consult survey found.
Of the 4,400 Americans polled, 1,207 identified as millennials, defined as ages 22 to 37 (237 respondents did not select a generation). The margin of error was plus or minus 1 percentage point.
Here are a few of the ways millennials are smart with their money, according to responses to our survey:
1. They have a savings account.
About 69% of millennials said they had a savings account, compared with 65% of Gen Xers, the survey found.
But while the existence of a savings account is inherently positive, it’s nothing without consistent contributions. A whopping 58% of millennials said they had under ,000 in a savings account, about 19% had between ,000 and ,000, and 11% had between ,000 and ,000.
Many financial planners recommend a high-yield savings account over a traditional savings account for an emergency fund or other short-term need. The best high-yield online savings accounts are offering an annual percentage yield between 2% and 2.5%, and many have no fees and low minimum deposits.
2. They have little to no credit-card debt
Millennials seem to know that keeping a balance on their credit cards isn’t going to make for a good credit score. About 32% said they had no credit-card debt at all — a greater share than Gen Xers (28%). Of the millennials who do have debt, a plurality (36%) said they had under ,000.
It might make sense that Gen Xers, who are older and presumably have more expenses, would be more likely to have credit-card debt, but in this survey the oldest millennials were 37 — and people’s 30s tend to come with houses, kids, pets, and expenses that are no longer limited to Gen X.
Two smart strategies to pay off credit-card debt, according to financial planners, are the “debt snowball,” which prioritizes paying off the smallest debts first, and the “debt avalanche,” which prioritizes paying off the highest-interest debt first. Either method is effective, so the best approach may be to pick the one you can commit to.
3. They would use a id=”listicle-2634449531″,000 windfall to pay off debt or save.
Given an extra id=”listicle-2634449531″,000 cash, 27% of millennials (a plurality) said they would choose to pay off debt, while 22% said they would save the windfall, the survey found. Only 6% said they would put it toward travel or shopping.
This is good instinct, as financial planners typically suggest stamping out debt with high interest rates first and foremost, even before saving for retirement or another financial goal. Carrying a balance on a credit card can erode your credit score, and fees and high interest rates can continually add to the overall debt load.
In the survey, the millennials who indicated they wouldn’t use the windfall to pay off debt or save said it would go toward outstanding bills (17%), necessities (12%), or an investment (9%).
4. They put more of their income toward retirement than Gen Xers.
Even though 52% of millennials said they didn’t have a retirement savings account, the ones who do are serious savers.
In the survey, nearly 16% of millennials said they set aside 11% to 20% of their income for retirement — more than any other generation. About 5% of millennials, the same share as Gen X, said they save more than 20% of their income for retirement.
A plurality (33%) said they put away between 1% and 10% of their income for retirement, which is a fine place to start. Experts recommend increasing savings rates annually or every time you get a raise.
One of the easiest ways to build wealth is through automatic and consistent contributions, starting with a retirement account. The contributions to a 401(k) or IRA are pretax, so the money will be taken out of your paycheck before it even hits your bank account. Many employers will match contributions up to a certain percentage or dollar amount. It’s basically free money, but you won’t get any of it unless you’re already contributing something on your own.
This article originally appeared on Business Insider. Follow @BusinessInsider on Twitter.
Career Incentive Pay is another part of the U.S. military’s Special and Incentive pay system and is intended to help the Services address their manning needs by motivating service members to volunteer for specific jobs that otherwise pay them significantly more in the civilian sector.
Each career incentive pay amount is in addition to base pay and other entitlements.
Title 37 U.S. Code, chapter 5, subchapter 1 outlines several types of S&I pay, and sections 301a, 301c, 304, 305a and 320 address incentive pays that are career specific.
1. Aviation Career Incentive
Who: Military pilots
How much: $125 to $840 per month, dependent on number of years serving as an aviator. This lasts the duration of the pilot’s aviation career.
2. Submarine Duty Incentive (SUBPAY)
Who: Navy personnel aboard submarines.
How much: The Secretary of the Navy has the ability to set SUBPAY up to $1,000 per month, but it is currently between $75 and $835 per month.
3. Diving Duty
Who: Service member divers.
How much: $340 for enlisted personnel and $240 for officers per month.
4. Career Sea
Who: Naval officers who’ve been assigned duties above and beyond what might be typical for an officer in the same rank and which are critical to operations.
How much: $50 – $150 per month, dependent on rank. There is a limit on payments made to O-3s to O-6s, and only a certain percentage of personnel in each rank can qualify for the pay.
5. Career Enlisted Flyer
Who: Enlisted personnel on flight crews for the Air Force and Navy.
How much: $150 – $400 depending on years in the aviation field.