By JLP | December 1, 2006
Thousands of U.S. troops are being barred from overseas duty because they are so deep in debt they are considered security risks, according to an Associated Press review of military records.
You can read the article here.
The military is concerned that troops who are heavily in debt might sell military secrets. It’s pretty scary to think that debt is a national security concern.
The question of the day is:
According to the article,
The problem is attributed to a lack of financial smarts among recruits; reckless spending among those exhilarated to make it home alive from a tour of duty; and the profusion of “payday lenders” – businesses that allow military personnel to borrow against their next paycheck at extremely high interest rates.
The first thing that comes to my mind is to get rid of payday lenders. MAKE PAYDAY LENDING ILLEGAL! The second thing that comes to mind is EDUCATION. But, is education the answer? Of course a person must KNOW how to manage their money and everyone should be schooled in the basics of money management. However, they also must be taught to practice self-control. I think self-control (self-discipline) is the real key. Let’s face it:
Obviously these lessons that people are missing out on must be taught and exemplified in the home by parents. In fact, I have read recently (sorry, I don’t know where I read it) that even high school personal finance classes aren’t doing the job of changing kids’ attitudes towards personal finance because the lessons come too late in life. So, parents who spend time showing kids how to budget their money when they are little (4-10 years old) are doing a lot more good than high school personal finance classes.
Read the article and leave your thoughts. I’m really interested in hearing what you have to say. I would really like to hear Dimes to Dollars’ thoughts on this matter since she is the wife of a military man.