First, some tips to help military spouses fulfill their financial duties at home:

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1 Red, White, Blue and Green: Finance 101 for Military Spouses Among the many unique challenges that military families face, managing household finances can be especially demanding, particularly for military spouses who must handle the majority of those responsibilities when military duty takes their husband or wife elsewhere for extended periods of time. Recognizing just how vital financial readiness is for military families, the U.S. government and each of the armed forces requires their personnel to take financial training courses. In addition, they offer a wealth of financial counseling and educational resources to their spouses. It pays to take advantage of those resources, said Sylvia Kidd, director of the Association of the U.S. Army (AUSA) family programs. When both spouses prepare and are proactive about their finances, they stand a great chance of developing a very nice nest egg. Basic Training First, some tips to help military spouses fulfill their financial duties at home: Start immediately by developing a spending or financial plan detailing your current situation, goals and how you plan to attain your financial goals. Rely on the resources listed in the next section for planning help. Make money management and financial planning a joint effort, so you are both fully aware of debt obligations, creditors and when bills are due. Establish a joint checking or savings account with direct deposit that you both maintain. Create a joint account specific to deployment so when you spouse is away, they do not interrupt the home account and leave your family in a crisis if your account become overdrawn. Plan for deployment well in advance with a deployment spending plan. Stash the extra cash. Deployment often results in a pay increase; however you should save it, since it will go away when your spouse returns. Save or invest that money instead of spending it, advises Kidd. When you are apart, use technology including phone, , Skype, etc. to stay connected and talk through financial issues when they arise. Discuss how your deployed spouse wants to hear about financial issues to alleviate extra stress after a long day on patrol. Resources The U.S. government offers several military-wide programs worth investigating, among them Military OneSource ( which provides free one-on-one financial counseling sessions with a CERTIFIED FINANCIAL PLANNER professional. To make an appointment or a phone consultation, call Additionally, spouses can access MHN Government Services Personal Financial Counselor Program at for individual and group counseling. Also check out: Military.com s Spouse and Family Benefits page at the Defense Department s Military HomeFront program at the Defense Finance and Accounting Service

2 at and, Military Saves, a program sponsored by the Consumer Federation of America ( to help military families build their savings. Each military service provides its own financial readiness resources while participating in the Personal Financial Management Program (PFMP), which provides classes, one-on-one counseling sessions and information. For details on services specific to each arm of the military, check out: the Army s AUSA Family programs at the Navy s Fleet and Family Support program at (click on Personal Finance ); the Marine Corps PFMP page at the Air Force s Personal Financial Readiness program at and, the National Guard Financial Management Awareness Program at Finally, there is the Military Spouse Finance Guide (with a preface co-authored by AUSA s Kidd) at BOILERPLATE July 2011 This column is provided by the Financial Planning Association (FPA ) of, the leadership and advocacy organization connecting those who provide, support and benefit from professional financial planning. FPA is the community that fosters the value of financial planning and advances the financial planning profession and its members demonstrate and support a professional commitment to education and a client-centered financial planning process. Please credit FPA of if you use this column in whole or in part. The Financial Planning Association is the owner of trademark, service mark and collective membership mark rights in: FPA, FPA/Logo and FINANCIAL PLANNING ASSOCIATION. The marks may not be used without written permission from the Financial Planning Association.

3 College for Working Adults: Financing the Dream Some 40 percent of American college students are 25 years of age or older, indicating it is never too late to seek a college degree. In order to pursue that degree as a working adult, you will not only need to find the time but the financial resources too. Take heart; where there is a will, there is usually a way. With the help of scholarships, grants, loans and other aid programs working adults can fulfill their dream of earning a college degree, even if they lack the financial means. To learn more about those programs, start at the U.S. Education Department s Web portal, Then investigate the following: TAX BREAKS: The American Opportunity Credit covers up to $2,500 of qualified education expenses per year for the first four years of postsecondary education (100 percent of the first $2,000 and 25 percent of the second $2,000).The student must be pursuing an undergraduate degree or some other recognized credential and be enrolled at least half time. The Lifetime Learning Credit covers up to $2,000 of qualified education expenses (20 percent of the first $10,000).Whereas the American Opportunity Credit is for the first four years of college, the Lifetime Learning Credit, as indicated, can be used through the taxpayer s lifetime. It is more liberal in its definition of qualified education as it can be most education to acquire or improve job skills and is not limited to degree oriented studies. The IRS also offers tax deductions of up to $4,000 for qualified education expenses, and up to $2,500 on student loan interest. Consult a tax adviser or a student aid adviser at the college or institution to which you plan to apply to learn more about eligibility. GRANTS & SCHOLARSHIPS: The Federal Pell Grant Program provides need-based grants of up to $5,500 to low-income undergraduates. Pell Grant recipients may also qualify for an Academic Competitiveness Grant and/or a Federal Supplemental Educational Opportunity Grant. Meanwhile, some colleges and universities convert non-federal school loans into non-federal grants if the student remains in school and graduates. Scholarships are numerous and can also be quite generous, said Joe Pitzl, a financial planner at Intelligent Financial Strategies in Edina, Minn. Find scholarship information on the Education Department s website at It is also worth researching scholarships offered by your home state. For a directory of state education offices, visit Additionally, contact the financial aid office at the school you are considering attending for information about specific scholarship and grant programs offered through that school. Some colleges offer bargain tuition rates to older students.

4 LOANS: Seek subsidized loans first, said Pitzl, because they tend to offer the lowest rates. Subsidized and Unsubsidized Stafford Loans are a popular funding vehicle for college students providing up to $12,500 per year at rates ranging from 3.4 to 6.8 percent. Students may also qualify for a low interest Federal Perkins Loan of up to $5,500 per year. Start with a visit to the portal and/or for an overview of the federal student loan program and then head to the Free Application for Federal Student Aid site at to start the process. Students who are not eligible for federal funding might qualify for state assistance. Contact the higher education office in your state for information. Keep in mind, some colleges and universities set aside funds for families who do not qualify for federal or state funding. Some employers offer tuition assistance, too. Private loans, such as a home equity line of credit, are another option for funding college, but should be used judiciously and wisely. Avoid using credit cards to cover education costs and be cautious about all kinds of student loan debt, advised Pitzl. Just because they will lend you a certain amount does not mean you should take the full amount, because it could leave you with a pretty hefty debt once you are done with school. USING RETIREMENT FUNDS: The IRS allows individuals to take distributions from an IRA for qualified higher education expenses without having to pay the 10 percent tax penalty. However, taking such a distribution is a taxable event and may push you into a higher tax bracket. CUTTING COSTS: Your life experiences could earn you college credit at some institutions. Check with that school for further information. Although the cost of higher education can be daunting, there are several options to help you through the next several years. Knowing where to start is sometime the hardest part. The information above can help you take the correct step towards finding the proper funding for your college dreams. BOILERPLATE July 2011 This column is provided by the Financial Planning Association (FPA ) of, the leadership and advocacy organization connecting those who provide, support and benefit from professional financial planning. FPA is the community that fosters the value of financial planning and advances the financial planning profession and its members demonstrate and support a professional commitment to education and a client-centered financial planning process. Please credit FPA of if you use this column in whole or in part.

5 The Financial Planning Association is the owner of trademark, service mark and collective membership mark rights in: FPA, FPA/Logo and FINANCIAL PLANNING ASSOCIATION. The marks may not be used without written permission from the Financial Planning Association.

6 Save Dough When You Go: A Guide to Vacation Cash Conservation Camera, sunscreen, golf clubs, a good book; when it comes to vacation necessities do not forget to bring along your wise spending habits. They will not take up any room in your suitcase and even better, they might just result in a richer yet less expensive vacation experience. According to experts from the Financial Planning Association in Denver, Colo., making the effort to stretch your vacation dollar may give you more options on your trip to relax while seeing and doing more. Individuals may even be able to stretch your vacation a little longer than originally planned. All you really need is a nose for finding deals (access to the Internet helps, but is not essential). Here are some tips for uncovering the best deals: Hunt online. Sites such as Groupon, Living Social, entertainment.com, halfoffdeals.com and restaurant.com can save you money on meals, activities, services, sightseeing and amusements specific to the area you are visiting, said Amy Hoffman, CFP at Advisors Financial, Inc., in Falls Church, Va. Scour kiosks and displays. Visitor s bureaus, tourist information centers, even hotels and restaurants, have racks full of discount flyers, coupons and info on special deals. Take advantage of the eat-in option. You can run up quite a tab eating out three times a day. So if you are staying in a rental property with a kitchen, or a hotel/motel with an in-room fridge, microwave or kitchenette, make a point of preparing at least some simple meals. Pounce on meal deals. Many hotels/motels offer free breakfast. Also look for 2-for-1 and kidseat-free deals at local restaurants. Pick up a discount card from a local grocery store. Whether for meals or just for snacks, buying groceries with a discount card can provide significant savings. Use the discount grocery card to buy supplies for a picnic you pack for your day s destination, whether it is a beach, park, or local attraction. Use public transportation instead of renting a car. Vehicle rental and parking can be really pricey, especially in cities and during high vacation season. Check with the transit authority in the area you are staying to see about short-term passes that provide unlimited transit ridership. If you are traveling by air, check in early by computer and prepay the baggage fee for the return flight. It can be cheaper that way. BOILERPLATE July 2011 This column is provided by the Financial Planning Association (FPA ) of, the leadership and advocacy organization connecting those who provide, support and benefit from professional financial planning. FPA is the community that fosters the value of financial planning and advances the financial planning profession and its members demonstrate and support a professional commitment to education and a client-centered financial planning process. Please credit FPA of if you use this column in whole or in part. The Financial Planning Association is the owner of trademark, service mark and collective membership

7 mark rights in: FPA, FPA/Logo and FINANCIAL PLANNING ASSOCIATION. The marks may not be used without written permission from the Financial Planning Association.