Financial Literacy Month: Did you know this about TSP

Starting in 2004, both Houses of Congress pass resolutions each year declaring April as National Financial Literacy Month. National Financial Literacy Month, sometimes referred to as National Financial Capability Month, is a month-long campaign to raise public awareness about the importance of financial literacy and the need for financial education.

Did You Know?

Of the more than 300,000 employees supported by the Army Benefits Center-Civilian (ABC-C), 31% of FERS employees and 53% of CSRS employees are contributing LESS than 5% of their salary to the Thrift Savings Plan (TSP).

Are you one of these employees that is not getting the full benefit of TSP? You can increase your TSP contributions at any time through the Employee Benefits Information System (EBIS), which is accessed from the ABC-C website at www.abc.army.mil.

Would you rather have a million dollars, or a penny doubled every day for 31 days?

If you chose a penny doubled every day for 31 days, you would end up with $10,737,418.24! This is an example, albeit an extreme one, of the power of compounding.

Did You Know?

Albert Einstein once declared compound interest to be “the most powerful force in the universe.”

Compounding IS powerful because it allows you to make money not just on the money you contribute to your TSP account every year, but also on the money that it earns.

The more years you have to save, the more effective it is. So the earlier you begin contributing to the TSP, and the longer you are able to leave the money in your account, the greater the opportunity you have to enjoy the benefits of compounding.

Check out the calculator  “How Much Will My Savings Grow?” on the TSP website at www.tsp.gov to see how compounding can work for you.

Army Community Service in Building 2915 on Panzer Kaserne provides all ID cardholders in Stuttgart with a variety of free classes monthly for TSP assistance, financial and relocation planning. For information, or financial assistance contact DSN: 431-3362/civ. 07031-15-3362.