DOD Efforts Under Way to Improve Financial Literacy and Responsibility of Military Members
We recently reported that DOD identified a need to improve the
financial literacy and responsibility of military members in its July
2002 human capital strategic plan.[Footnote 21],[Footnote 22] As part of DOD's
balanced scorecard, the Under Secretary of Defense for Personnel and
Readiness reviews issues affecting force management risk. One of the
indicators used in the review is personal finances, which is evaluated
in terms of the self-reported financial condition of junior enlisted
personnel (E1-E4) and their self-reported ability to pay bills on time.
Data to support these evaluations are supplied on an annual basis
through Defense Manpower and Data Center surveys of active duty service
members. Among other things, DOD is reviewing a draft personal
financial management policy that seeks to establish a uniform approach
to educating and training all military service members.
In May 2003, DOD formally launched a "financial readiness campaign" to
address military service members' poor financial habits and to increase
financial management awareness, savings, and protection against
predatory practices. DOD has also entered into a number of partnerships
with nonprofit organizations and government agencies that have agreed
to support counselors who offer financial assistance programs to
military service members. The services have also made improvements. For
example, the Navy has raised its mandatory number of personal financial
management training hours, and it is using mobile financial management
teams to train financial specialists, including those in geographically
remote regions where there are no financial educators to provide
training. The services also provide financial planning information on
their Web sites.
 See GAO-03-1004.
 Department of Defense, Deputy Assistant Secretary of Defense (Military Community and Family Policy), A New Social Compact: A Reciprocal Partnership between the Department of Defense Service Members, and Families (July 2002).