Personal finance class teaches servicemembers value of dollar
Personal finance class teaches servicemembers value of dollar
Submitted by: MCAS Miramar
Story by: Computed Name: - Lance Cpl. Skye Jone
Story Identification #: 200482623572
MARINE CORPS AIR STATION MIRAMAR, Calif. (Aug. 26, 2004) -- Living paycheck to paycheck is a way of life for many Marines. In fact, 90 percent of the population lives this way, according to Tom Graneau, financial management counselor, Marine Corps Community Services.
Graneau teaches the fundamentals of check writing in personal finance class, which is open to all personnel aboard the station at the MCCS counseling center. The two-hour course answers the question, "Are you controlling your money, or is your money controlling you?"
Money goes in and money goes out. It provides food, shelter, clothes, and transportation. According to Graneau, a Temecula, Calif., native, "As long as you're living, you need money. Therefore, money is, in fact, life."
Many Marines use their paycheck to get by for two weeks and wait for the next one to do the same, all without thinking about future financial problems such as potential purchases, incurred debts and retirement funds.
"I spent my first enlistment living in the moment and not thinking about the future. Instead of saving, I kept withdrawing," explained Staff Sgt. Aaron J. Cross, non-destructive inspector, Marine Aviation Logistics Squadron 11. "I didn't see the long run picture, like having a nice house or car. Now I am paying for the choices I made earlier in my life."
According to Graneau, it is not too late to turn a seemingly hopeless financial situation into a bountiful one.
"I have a lot of sergeants major and other high ranking servicemembers, who come to me and say that they wish they heard these things when they were 20."
Each servicemember receives two paychecks a month that can be used to save money for the future. The government gives out pay for the time a servicemember invests, explained Graneau.
"Dollars translate into life. Before retirement you need to work, making it vital to plan for your future now," said Graneau. "If you do not save now, your paychecks won't be able to pay for everything when you are older. That's when people look for solutions, because they can no longer pay for all of their expenses."
Many people have debts and bills to pay, but neglect to pay their savings account. Graneau advises that the account be treated like a bill.
"I used to have a lot debts and I didn't manage my finances correctly," said Lance Cpl. Eddie Castillo, CH-46 helicopter mechanic, Marine Medium Helicopter Squadron 165. "Now I am trying to use the resources here and change my lifestyle to accommodate savings into my financial plan."
Graneau explained that the rich will get richer and the poor will continue to get poorer because money makes money. This makes it imperative to start building money now, not later.
"Each paycheck should be divided into three areas: bills, savings and fun," said Graneau. "You need all three to create a truly successful plan."
For example, if corporal made approximately $1300 each month and used $300 of that to pay bills, put $800 into savings and used the remaining amount to have fun, he or she would have almost $30,000 in three years.
If a Marine started saving a mere $95 a month at age 20 with a 10 percent annual return, $1,004,136 would be saved by retirement. However, if a Marine started saving the same amount ten years later, he or she would only accumulate $363,686 by retirement. The later money is invested into savings, the smaller the return.
"Even if you can only afford to put $20 into savings, your money will still grow, the sooner you start saving, the better," said Graneau.
For more information contact Tom Graneau at (858) 577-9802.
"I can provide financial training, but it is ultimately up to individuals to take charge of their finances," said Graneau.
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Submitted by: MCAS Miramar
Story by: Computed Name: - Lance Cpl. Skye Jone
Story Identification #: 200482623572
MARINE CORPS AIR STATION MIRAMAR, Calif. (Aug. 26, 2004) -- Living paycheck to paycheck is a way of life for many Marines. In fact, 90 percent of the population lives this way, according to Tom Graneau, financial management counselor, Marine Corps Community Services.
Graneau teaches the fundamentals of check writing in personal finance class, which is open to all personnel aboard the station at the MCCS counseling center. The two-hour course answers the question, "Are you controlling your money, or is your money controlling you?"
Money goes in and money goes out. It provides food, shelter, clothes, and transportation. According to Graneau, a Temecula, Calif., native, "As long as you're living, you need money. Therefore, money is, in fact, life."
Many Marines use their paycheck to get by for two weeks and wait for the next one to do the same, all without thinking about future financial problems such as potential purchases, incurred debts and retirement funds.
"I spent my first enlistment living in the moment and not thinking about the future. Instead of saving, I kept withdrawing," explained Staff Sgt. Aaron J. Cross, non-destructive inspector, Marine Aviation Logistics Squadron 11. "I didn't see the long run picture, like having a nice house or car. Now I am paying for the choices I made earlier in my life."
According to Graneau, it is not too late to turn a seemingly hopeless financial situation into a bountiful one.
"I have a lot of sergeants major and other high ranking servicemembers, who come to me and say that they wish they heard these things when they were 20."
Each servicemember receives two paychecks a month that can be used to save money for the future. The government gives out pay for the time a servicemember invests, explained Graneau.
"Dollars translate into life. Before retirement you need to work, making it vital to plan for your future now," said Graneau. "If you do not save now, your paychecks won't be able to pay for everything when you are older. That's when people look for solutions, because they can no longer pay for all of their expenses."
Many people have debts and bills to pay, but neglect to pay their savings account. Graneau advises that the account be treated like a bill.
"I used to have a lot debts and I didn't manage my finances correctly," said Lance Cpl. Eddie Castillo, CH-46 helicopter mechanic, Marine Medium Helicopter Squadron 165. "Now I am trying to use the resources here and change my lifestyle to accommodate savings into my financial plan."
Graneau explained that the rich will get richer and the poor will continue to get poorer because money makes money. This makes it imperative to start building money now, not later.
"Each paycheck should be divided into three areas: bills, savings and fun," said Graneau. "You need all three to create a truly successful plan."
For example, if corporal made approximately $1300 each month and used $300 of that to pay bills, put $800 into savings and used the remaining amount to have fun, he or she would have almost $30,000 in three years.
If a Marine started saving a mere $95 a month at age 20 with a 10 percent annual return, $1,004,136 would be saved by retirement. However, if a Marine started saving the same amount ten years later, he or she would only accumulate $363,686 by retirement. The later money is invested into savings, the smaller the return.
"Even if you can only afford to put $20 into savings, your money will still grow, the sooner you start saving, the better," said Graneau.
For more information contact Tom Graneau at (858) 577-9802.
"I can provide financial training, but it is ultimately up to individuals to take charge of their finances," said Graneau.
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