Photo By Petty Officer 3rd Class Samantha Robinett | Holly Petraeus, wife of Army Gen. David Petraeus, commander of U.S. and NATO forces in...... read more read more
VIRGINIA BEACH, Va. - “Set it and forget it,” said Holly Petraeus, speaking about saving money at the Military Saves Week event held onboard Joint Expeditionary Base Little Creek-Fort Story’s Gator Theater, Feb. 25.
One of the best things service members can do to save is to “Set it and forget it” by setting up an allotment to a savings account and forget that the money is in your account until you really need it, said Petraeus.
Petraeus, wife of Army Gen. David H. Petraeus, commander of International Security Assistance Force and Commander of U.S. Forces Afghanistan, was asked to speak on service members’ financial issues after being named the head of the newest office in the Treasury Department – The Office of Service Members Affairs, which is slated to begin operations July 21.
The Office of Service Members Affairs is a part of the Consumer Financial Protection Bureau which says that its mission is to make markets for consumer financial products and services work for Americans.
“We are a part of a larger agency,” said Petraeus. “Last year the Dodd-Frank Act set up the Consumer Financial Protection Bureau and the law said that there had to be a special bureau for military. That is how we got the Office of Service Members Affairs.”
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was signed into law by President Barack Obama on July 21, 2010, and is “an act to promote the financial stability of the United States by improving accountability and transparence in the financial system.”
That is just what Petraeus intends to do. By improving accountability in not only the financial system, but in the military training that helps service members she intends to help them choose the best way to use their money and what items they should purchase.
“That is the reason that I took this job – I hate to see military members get ripped off or even just spend their money on a product that isn’t worth what they pay for it.”
Surveys have shown that finances trail only behind work and career concerns as a source of increasing stress according to a White House blog written by Elizabeth Warren, a special advisor to the secretary of the treasury on the Consumer Financial Protection Bureau.
The blog states that finances are bigger stress producers for service members than deployments, health, life events, family relationships and even war. According to the blog, financial issues accounted for 78 percent of security clearance revocations and denials for Navy personnel in 2007.
“There are serious financial problems and they lead to a lot of repercussions,” said Petraeus. “It leads to loss of security clearance and just the ability to do the best job they can because they are preoccupied with their financial matters.”
“Debt is a big problem,” said Petraeus. “I have heard that service members are now joining with an average of $8,000 in debt. So you are starting with a lot of debt and it is hard to dig your way out.”
Petraeus said she sees a lot more being done for service member’s finances now.
“I think it is awesome as a military spouse,” she said about the new programs established for military families. “I’ve been around the military for a long time and there weren’t a lot of programs back when I was young. I remember Vietnam and very little was done for military families, but we’ve come a long way since then and we can go even further now.”
She was raised in a military family and married the general in 1974, only weeks after he graduated from the military academy and received his commission as an officer. Though, it wasn’t until he was attached the 101st Airborne Division based in Fort Campbell, Ky., that she became involved in combating predatory lending.
“[Service members] are a targeted population and it’s sad to say that, but it’s true,” said Petraeus. “Outside the gates of military installations, there’s usually a strip out there with the ‘buy here, pay here’ car dealers, the check cashing, the payday loans, the pawn shops – all ways for them to basically cut into their paychecks by taking out debt to buy things.”
Petraeus said that not only does she understand the financial problems that most service members face, but she hopes that the new office will be something that service members can come to and take their feedback, as well as establish new rules to help protect service members.
“This bureau is an enforcement agency – they actually have the power to make changes. That was very exciting to me and a big part of why I was very happy to come over and assume this job.”
Although a big part of the Office of Service Members Affairs is to find predatory lending and help protect service members, Petraeus said she will stay committed to helping service members save money.
“The biggest thing is to leave that money in the account, if you don’t use it, it will grow pretty quickly into a savings account you will be able to rely on when you need it.”
Petraeus recalled during the seminar about a young petty officer in the Navy she had met years ago who was $30,000 in debt.
“She was a single mother in the military and she told me that she wanted to save money for her kids,” Petraeus told the audience. “I saw her a few years later and she told me that she had $100,000 in the bank and I know if she can do it, you can do it.”
| Date Taken: | 02.25.2011 |
| Date Posted: | 02.28.2011 13:41 |
| Story ID: | 66229 |
| Location: | VIRGINIA BEACH, VA, US |
| Web Views: | 89 |
| Downloads: | 0 |
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