Hi everyone!

I am currently doing research to find out how many Active Duty members feel that they are living paycheck to paycheck. It is my contention that the CG (as well as other services) are not proactive enough in teaching its members about being financially responsible, and I'd like to see that change. I'm starting out by running this poll to determine how large an issue we have. I'd appreciate it if everyone was honest, because this is only to help our struggling servicemembers.

A bit about me; I'm currently active duty CG, and I've been in for five years. I was Navy for 6 years before that, and when I first joined the CG, I was very bad with money. I have now turned my financial situation around 180 degrees, and I'd like to help my fellow Coasties do the same. Sad to say it, but I was forced to do it myself, and I want to see some changes made to CG policy regarding financial repsonsibility. Yes, members can go to command financial advisors, but I don't think that's enough. I'd like to see the CG develop a required course on financial planning, perhaps taught in either boot camp or A-school.

Thanks for your time!

Question:
How many Active Duty Coast Guard men and women feel they live paycheck to paycheck, in other words, little or no savings, little or no investments, and spending close to or more than what you earn each payday?

Choices:
Junior enlisted (E-1 to E-5)
Senior Enlisted (E-6 to E-9)
Junior officers (O-1 to O-3)
Senior officers (O-4 and above)

 

Financial Planning is already a part of the A School curriculum. Command Financial Counselors can help a member as can the EAP Program.

Programs are already in place, members just need to use them.

As Pat Flynn stated, there are already programs in place. In addition, there are Work-Life counselors, command reps, and access to training at DOD bases. Plenty of information is available at libraries, book stores, and on the net.

Pat also hit the nail on the head with this..."Programs are already in place, members just need to use them."

Specifically, the member needs to take ownership of their financial status. Living paycheck to paycheck can be changed very easily. It means not buying a $120 pair of Oakley shades and wearing them while painting over the side. Or leaving the base at lunch time to buy Mickey Ds, Junk in a Box, or Taco Bell and driving past the galley to do so. It means driving a reasonable vehicle and not putting $1,200 worth of rims on a Dodge Dart. It means not incurring $400 cell phone bills.

While your intent is honorable, I think it's already being addressed. But until Coast Guard members, and society in general, want to take ownership of the problem, nothing is going to change. Look at the $30,000 CSB/Redux payment. Despite all the information out there, many Coasties have taken the money and blown it. The payback...a lifetime of reduced pension and COLA payments. I lost count of the Coasties who drew PCS allowances and blew them before they began travel. They then had to submit a quick advance pay request to pay for the PCS.

Recent posts in this forum even allude to taking their TSP funds out upon leaving the Coast Guard and spending the money. It's a retirement pension, not a "glorified saving account" for a boat or vacation.

The information is out there. You just have to implement it.

Brian, I agree with what you say, yet in my particular situation, none of that worked. I wasn't buying $120 shades, going to Mickey D's every day, or putting ridiculous things on my car. I was paying rent, utilities, buying groceries, diapers, and gas, and that's about it. I had no car payment; my wife and I owned both cars outright, and we had liability-only insurance on the cars. Yet we still struggled for money. I came to find out that it was because my wife was (mis)handling the money.

And Pat, Financial Planning being part of the A-School curriculum must be new, because when I went through Yorktown, I never received it.

That being said, financial planning is training that should be ongoing process; we go through sexual harrassment, workplace violence, and CPR training every year. Financial planning should be considered just as important.

By the way - it is also part of Boot Camp.

I graduated ET 'A' School on 01NOV07 and we had a two day financial planning course taught by one of the YN1's...

As stated above... There is a plethora of information ready at every members hand... All they have to do is go to the right people... In addition to Work-Life, EAP's, Financial Counselors, etc., there is a great resource available to all service members: USAA... They have great people on staff that will set you up with a financial plan, debt payoff, whatever you need... USAA is, in my opinion, one of the greatest tools a military member could ever ask for...

I don't know about the situation you were in, but I'm an E-4 with a wife and three month old daughter... I too have to buy diapers, groceries, etc... I also have a truck payment every month, however we can afford for my wife to stay at home with our daughter and still have money left over to put in savings every month... I'm a firm believer that if you're living within your means and not trying to maintain a lifestyle above your pay grade then the money we make is quite manageable... Under no circumstances am I saying I don't like getting pay raises, but we make enough to make a decent living...

ET3 Sends...

John,

Nice post. All the best with your career. Hope it's a long one with plenty of advancements, promotions, and interesting asssignments. And congratulations on that new addition to the family!

quote:

Originally posted by Brian_Jordan:
John,

Nice post. All the best with your career. Hope it's a long one with plenty of advancements, promotions, and interesting asssignments. And congratulations on that new addition to the family!

Thanks Brian...

i have been in the guard for a little over 2 years and have been living paycheck to paycheck ever since. the people who figure out whats fair pay dont consider modern expenses. BAH is only reasonable if you have roomates. My cola in alameda was in the 200's the i came my miami and it dropped down to 40, and nothing is any cheaper here, if anything its more. my car insurance almost doubled coming here. we get an annual pay raise that barely keeps up with inflation and some years it doesnt. mutual assistance is a joke. they brag about giving away so much money each year. but it is an incredible hassle to get it, for instance: they wont give you a loan to fix your car but if you say you had to pay too much to get you car fixed and you cant pay your rent, then they might give you a loan; and dont even bother trying to get a grant. alot of the people posting on this topic seem to be senior enlisted and i mean no disrespect to them however a lot of you say "we have financial planning courses" and we do. however the coast guard has nothing to help you get out of debt as far as debt counseling goes. all we have is someone telling to make a budget. i honestly think we need to hire some civillian financial advisors. and one last thing: as far as saving money is concerned the only thing ever mentioned at any training is TSP wich not a bad program but there is alot more options than just that.

15630611,

You are right that it seems like alot of aenior enlisted are responding and don't understand the issues of our young people.

On the flip side, when those same senior people were in your shoes some 20+ years ago, their base pay was probably half of what your's is now, most likely no BAH, no COLA, no SEPRATS and probably had to live onboard a ship.

And, 20+ years before them it was even worse. It's all relative and it is your money and you are an adult. Act like one.

40 years ago an E-4 over 3 made $235 a month. BAQ was a straight $ 90.60 with 2 dependants. At that time there wasn’t any COLA for different areas of the country. Base pay since then has increased over 800%.

With no allotments my pay as a SN was $144 a payday.

Had to live onboard the ship, heck if you were single no one got BAH everyone lived on board:

Lets see a married E-4 in Miami Gets 1629. Single 1257. a month for BAH to rent a one bedroom apartment (Which is what a married E-4 rates)

rent.com shows lots of apartments from $800 to $1200

A E-4 base pay is $1848.

Subsistence (SEPRATS) is 293.43

So you make $3370 to $3770 a month not too bad for someone with only 2 years in. Surely that is enough to live within your means.

This message has been edited. Last edited by: FlynnPatrick,

quote:

Originally posted by spudsdown:
40 years ago an E-4 over 3 made $235 a month. BAQ was a straight $ 90.60 with 2 dependants. At that time there wasn’t any COLA for different areas of the country. Base pay since then has increased over 800%.

Fifty, yep, fifty years ago I was making 90.00 per month. Single, living aboard, and had money to burn.

Now, with COLAs, my retired pay is more than I was making on active duty as an E8 with dependents and sea pay.

I miss the 1950s!

I can see that they now have classes on this topic in a school and bootcamp. I do remember a little about it 6 years ago when i went through at the age of 19. now being 25 i have learned alot on my own by mistakes that i have made with money. The problem with them teaching this n those places, i feel, is that most people are so young they are not thinking about planing for the future finacial(sp). I do believe that there should maybe be a little more training out in the field to kinda keep it fresh in peoples mind. And yes they do have people they can talk to if they ave problems but its not really talked about it, and also alot of people are emarassed when it comes talkin about there money problems, and i think that to would help with some training in the field.

Every ISC has a CDA attached. Part of the annual CDA show is financial planning.

Maybe you should ask your Silver Badge to invite the local CDA to the unit for training.

As I said earlier you can always call the EAP Contractor and they will set you up with some help. To use the EAP, simply call the following toll free number and make an appointment to see an EAP counselor: 1-800-222-0364.

This message has been edited. Last edited by: FlynnPatrick,

15630611, While I understnd your points about paycheck to paycheck, I too did that for many years. But when is the Coast Guard requiered to take you by the hand and spoon feed it to you? With the information that is availabe to everybody. Why must the CG do more for you? WHerr is the personal responsability. Do you have cell phones? Upgraded cable TV? It seems they offer a lot already.

Mike

This message has been edited. Last edited by: CGMaddog,

I am currently living paycheck to paycheck but have imposed this on to myself. I didn't start an investment plan till my 15 year mark. Since then, my portfolio looks sound. I do recommend taking advantage of available assets and start early. I wish I would have.

Swab

quote:

Originally posted by CGMaddog:
jgcoastie, While I understnd your points about paycheck to paycheck, I too did that for many years. But when is the Coast Guard requiered to take you by the hand and spoon feed it to you? With the information that is availabe to everybody. Why must the CG do more for you? WHerr is the personal responsability. Do you have cell phones? Upgraded cable TV? It seems they offer a lot already.Mike

What are you talking about? I never said anything about needing the Coast Guard to do more for me... I'm a grown adult and I handle my finances like one...

I highly suggest you re-read my posts before
making comments like that one...


ET3 Sends...

The best way to help is volunteer to be a collateral duty financial counselor. The Navy has a well organized training session for that. We used the services in the Norfolk area out of E-City, NC. There may even be something like that through either the District office, Work/Life or MLC. Run a chit up the chain offering your services.

We tried to get Petty Officers to do this to be closer in age/rank than us old crusty CPOs.

Spoon feed or not, an ounce of prevention is worth a pound of paper work, but there are limits to constant hand-holding.

Good Luck! Work with your Chain of Command!

I found myself living paycheck to paycheck, the first few years I was in the Guard. It wasn't until I saw my command financial advisor that I managed to start saving. He told me to budget and write down everything I spent money on. After I made a budget for all my basic living expenses, I found that I should've been coming out ahead every month. Then I started to write down everything I spent money on as suggested by my CFA. I found out that I was blowing alot of it away. Restuarants and fast food everyday, premium cable package, a crap ton of beer, buying alot of stuff that I didn't need. I preach budgeting to every person who comes to work for me. The Coast Guard pays you enough to live and then some. How you choose to spend it is entirely up to you. BAS is 270ish a month. You spend that real quick if you're hitting Burger King and Subway everyday. BAH is intended to put a roof over your head not get you a penthouse suite. Last thing evry Coastie should have an emergency fund saved. The Coast Guard shouldn't be expected to shell out money just because your car broke down. That's your responsibility.