Broke for the holidays? Old habits get servicemembers ready for new government card

  • Published
  • By Maj. Michael Goodman
  • 17th Comptroller Squadron Commander
GOODFELLOW AIR FORCE BASE, Texas --  Broke for the holidays? Years ago, before credit cards were common, people had to save money to buy the things they couldn't afford. Every month they knew how much money they had and what bills they needed to pay. After their bills were paid, they saved the remainder for the holidays, emergencies or retirement. Every month they used the same plan, and by the end of the year, they had saved enough for the holidays. There was nothing magical about this plan despite the fancy name some people gave it. What's it called you ask? It's called a budget.

While it sounds complex, a budget is really simple. It's so simple that it can be done in your head or on the back of a napkin. Servicemembers receive a consistent paycheck every month which makes building a budget even easier. Simply add the mid-month pay and the end of month pay together (both can be found on the end of month Leave and Earning Statement), and then start subtracting all of the monthly bills. Whatever is left over is what's available to save or spend. It's that easy.

But what about those times when a servicemember is on a temporary duty assignment and isn't so sure how much money he will have? Building a budget is even easier. When a servicemember deploys, the Air Force pays for his food, lodging and transportation so the budget is going to be pretty basic. Since all of the expenses are paid, all there is to worry about is managing the $3.50 per diem. That works out to be a medium coffee at Green Beans coffee shop every day. Those who go with a small coffee will have enough change left over to download a song or two from iTunes. They could build up quite a music library by drinking the small coffee for 180 days. Just imagine, those who don't drink coffee could save $630; enough for a decent laptop, a small flat screen TV or airline tickets home during the holidays.

The idea of having a plan for money may sound simple, but it's critical for every Airman's future success in the Air Force. Soon servicemembers will be receiving a new type of travel card; a cash card that can be used anywhere and on anything. Unlike the old Citi Government Travel Card (GTC), the new Citi Controlled Spend Account (CSA) has no restrictions. Before travelling, the CSA will be loaded with enough money to complete the mission. In most cases, servicemembers with money left over after their trip can keep it. Since the CSA is not a credit card, there's no way to spend more than what's authorized. This leaves it up to each servicemember to come up with a plan on how to spend the money on food, lodging and transportation.

This may sound overwhelming, but remember the example above - once transportation and lodging are paid for, the equation is basically the same. Those staying on base but not eating all of their meals at the dining hall should plan to spend no more than $25 a day on food. That's lunch at the local sandwich shop and dinner at the steak house. Those staying off base should plan to spend no more than $40 a day on food. That's lunch at the local sandwich shop, dinner at the steak house and $15 in their pocket.

By staying within the plan outlined above for each situation, servicemembers can complete the mission and have money to spare. It's what people did before credit cards. It was second nature to them, and with enough practice, it will be second nature to you too.