Introducing Skyler, Soaring with Savings!

Twenty-nine percent of all respondents chose Skyler, Soaring with Savings, as the new name for the Military Youth Saves mascot.  Amy of North Carolina made the winning entry and wins a $50 savings bond and a Military Saves coin!

Breaking The Debt Cycle: Avoiding Bad Spending Habits and Practices
Courtesy of InCharge Debt Solutions

If you're in debt, you're by no means alone. In fact, together, Americans owe nearly $2 trillion in consumer debt, according to the Federal Reserve. That's over $18,000 per household, and is up 41% from 1998. But just because you're caught in the debt cycle now doesn't mean you have to stay stuck in it forever. Your spending habits have a huge impact on your amount of debt. And a few positive changes can make all the difference.

Pay with cash, not credit.  This sounds so simple, but how many of us do it? With so many "Zero down!" and "No payments for 18 months!" types of offers out there, it is very tempting to buy now and pay later. The problem is, you really do pay later - usually much more than you planned to. Hidden interest rates and fees can add up fast. And paying for things months or even years after you've bought them is a sure way to keep you in debt for longer than necessary.

Develop a budget to know what you can spend.  It's not rocket science. Just make a list of all the expenditures you have each month, total them, and subtract the total from your monthly income. The amount you have left is your "disposable income," meaning the amount you have left over to meet all other obligations including savings. This should be your source for spending, not credit cards.

Pay yourself first.  Start a "rainy day" fund for unexpected emergencies. They always crop up: car repairs, doctor visits, appliance repair or replacement - and having an emergency fund in place will keep you from having to use credit.

Comparison shop.  Check prices before you buy. Use the Internet, sales circulars from your local paper, the telephone, or even your Aunt Edna. Try Web sites like www.mysimon.com  or www.epinions.com to see what the item you want to buy is priced at through various retailers. You could save big!

Avoid cash advances.  Whether from a paycheck advance or your credit card company, this "easy money" comes at a huge cost - extremely high interest and fees. Stick to your budget and you'll be able to skip them altogether.

Don't buy on impulse or emotion.  Let's face it, buying stuff is fun. And it can make us feel better, temporarily at least. But purchasing items you don't really need or haven't budgeted for can keep you in the debt trap forever. Treat yourself to the things you want, but do it the smart way: identify what you want in advance, save up for it, week by week, until you can really afford it.

Don't waste money unnecessarily.  We all have them: expenditures we really shouldn't have. They can be anything: magazine or newspaper subscriptions that we don't read, late fees on videos or DVDs, unwatched cable channels, leaky faucets - anything that we could avoid paying for if we just did something about it. Like the ad says: Just do it. Take the videos back on time. Fix the running toilet. And save yourself some cash.

The bottom line? Don't spend more. Spend smarter..

Free Credit Counseling Services Available. InCharge Debt Solutions has a Memorandum of Understanding with the Department of Defense to provide credit counseling services to military service members and their families.  An InCharge certified credit counselor can review your financial situation and provide recommendations on what solutions may be most appropriate based on various factors.  Service members can access free credit counseling services from InCharge by calling (877) 399-8656 or by visiting www.incharge.org/mm.

For more information on Military Saves, visit www.militarysaves.org.  Send us your savings tips and your success stories!  Email us at info@militarysaves.org,

Military Saves has joined the social networking world...Find us on Facebook! 

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Beware of Fake Check Scams 
Courtesy of FINRA Investor Education and saveandinvest.org

We are issuing this Alert to warn the public about "mystery shopper" and "modeling" scams using checks that appear to be from legitimate companies-including FINRA.

In each of these scams, you are sent an authentic-looking check. In many instances, the name of a real company appears on the check as well as real account and routing numbers. You are instructed to deposit the check in your bank account and then transfer a portion of the money to someone else. Days later, your bank informs you that the check was counterfeit and that you are liable for the amount withdrawn, usually several thousand dollars. You've been scammed.

We are aware that fraudsters behind some of these scams have created fake FINRA and "NASD Regulations" [sic] checks. (NASD Regulation was a subsidiary of FINRA's predecessor, NASD.) Because it can be very difficult to tell a real check from a counterfeit one, we are urging consumers to be cautious if someone they don't know asks them to cash a check and then transfer the money.

This Alert describes two fake check scams that we've identified, offers tips on avoiding these types of frauds, and tells you where to turn for help if you are a victim of one of these scams.

Mystery Shopping Scam:  Fraudsters lure victims by posting ads for mystery shoppers in job classifieds, such as on the popular Web site Craigslist (www.craigslist.org ). When victims respond to the ads, they are led to believe that they have been hired as mystery shoppers to evaluate the services of money transfer companies, such as MoneyGram. Victims are then sent checks that appear to be from legitimate companies-including FINRA-and instructed to deposit the checks in their bank accounts, then withdraw most of the money and wire it to someone else-often a purported fellow mystery shopper. Victims are told to keep several hundred dollars of the money as payment. When the checks are later discovered to be phony, the banks reverse the deposit and the victims are left liable for the money withdrawn, usually several thousand dollars.

Modeling Scam:  Typically this scam starts out with a victim responding to an online posting-or the victim may have posted information online, such as with a modeling clearing house. Either way, the victim eventually gets "hired" by the fraudsters to model and receives an email with instructions. Similar to the mystery shopping scam, the victim then receives a legitimate looking check and is told to cash the check, wire some portion of the proceeds to a third party-such as a "supervising crew"-and keep the remainder as payment.

How can I protect myself? To avoid fake check scams, follow these tips:

Don't "keep the change." No legitimate company will overpay you and ask that you wire the difference back to the company or to some third party. Be extremely wary of any offer-in any context-to accept a check or money order in an amount greater than you are owed.

Call the company directly to verify the check. Remember that some fake checks will have a legitimate company's actual account number with the correct bank routing number. Call the company directly to verify the check, using a telephone number you obtain on your own from directory assistance. Do not use any telephone number that appears on the check or in any instructions you receive. For FINRA checks, call (301) 590-6500.

Know the hallmarks of fraud. Fake check scams typically have a number of red flags, such as:

Where to Turn for Help:  FINRA urges victims of fake check scams to contact one of the following organizations right away:

The Government Securities Investment (G) Fund

The G Fund invests exclusively in a short-term U.S. Treasury security that is specially issued to the TSP.  Payment of principal and interest is guaranteed by the U.S. Government so the fund will not lose money.  The interest rate is determined monthly and reflects the current yield of all U.S. Treasury notes and bonds with 4 or more years to maturity.  However, it does not offer the potential for high long-term investment returns.

The Fixed Income Index Investment (F) Fund

The F Fund is invested in a bond fund that tracks the Barclays Capital U.S. Aggregate Index.  It is a broad index representing debt securities in the U.S. Government, mortgage-backed, corporate, and sovereign government sectors of the U.S. bond market.  It has the potential to earn rates of return that exceed money market fund rates over the long term.

The Common Stock Index Investment (C) Fund

The C Fund is invested in a stock index that tracks the Standard & Poor's 500 (S&P 500) Index.  It is a broad market index made up of the stocks of 500 large to medium-sized U.S. companies.  Though riskier than the G and F Funds, it offers the potential to earn high investment returns over the long term.

The Small Capitalization Stock Index (S) Fund

The S Fund is invested in a stock index that tracks the Dow Jones U.S. Completion Total Stock Market Index.  It is a broad market index of small and medium-sized companies that are not included in the S&P 500 index.  Though riskier than the G and F Funds, it offers the potential to earn high investment returns over the long term.

The International Stock Index Investment (I) Fund

The I Fund is invested in a stock index that tracks the Morgan Stanley Capital International EAFE (Europe, Australasia, Far East) Index.  It is a broad international market index, made up of primarily large companies in developed countries outside the U.S.  Though riskier than the G and F Funds, it offers the potential to earn high investment returns over the long term.