Photo by Bonnie Heater Francis Dong, an associate director of military education for the Financial Industry Regulatory Authority Investor Education Foundation, talks to members of the medical staff about taking charge of their financial future and managing their money with confidence Dec. 12, 2008 in the first floor auditorium of the Dwight D. Eisenhower Army Medical Center. (This is part one of a three part series on financial education offered by the Financial Industry Regulatory Authority Investor Education Foundation.)

Several members of the Fort Gordon community received some valuable information during the financial forum held on post and at the Charlie Norwood Veterans Medical Center Dec. 10 -12, 2008.

The event was hosted by the Fort Gordon Army Community Service in partnership with the Leadership College of Information Technology and the Dwight D. Eisenhower Army Medical Center.

Through a memorandum of understanding agreement with the Department of Defense members of the Financial Industry Regulatory Authority Investor Education Foundation presented programs on "Smart Money, Credit and Investing Management" and "Smart Saving for Retirement."

Francis Dong, a FINRA Investor Education Foundation associate director of military education, opened up the financial forum for the hospital staff at DDEAMC Dec. 12 with a quick explanation of the role of the FINRA.

"FINRA regulates all securities firms in the United States," said Francis Dong. "We write regulations, administer exams for all people who want to get into the industry [e.g. commodity, stock, and bond brokers]. We also investigate complaints, and ultimately we can kick people out of the security industry who break the laws.

"One other thing we can do as the result of the fines we impose is fund finance education programs such as this one which is designed for military members and their Families," he explained.

"We don't sell or endorse any financial products," said the former finance professor of the University of Maryland. "The purpose of this program is to educate and inform you on how to maintain good credit, save smart, invest wisely and retired comfortable.

"The most important move you can make is to set financial goals for yourself," he said. "Set goals that are achievable. It's important that you have short and long term goals.

"Be specific about your goals," he added. "Setting a goal to pay off all your debts by the end of 2008 may be too broad and unachievable. However, selecting a single credit card to pay off by the end of 2009 is an example of a realistic and specific goal.

The second most important thing in regards to finance is to believe in you, he said. "Some people chose to have professionals guide them through the financial world and that's fine. They are there to help you. But you still need to educate yourself and you need to be in the driver's seat.

Let's talk about making the right moves to improve your financial health, Dong added. The first one would be to obtain and maintain good credit. You might ask, "How does that happen?"

According to Dong, nearly every financial decision you make is being watched with the goal of determining your financial profile.

Who are these people watching you? They are the three big credit bureaus - Experian, Equifax and Trans Union.

"Every time you apply for a car loan, pay your credit card or not they are keeping track of it," Dong said. And they do this by entering the information on your credit report.

According to Dong, if your credit score is 720 or above you are in good shape. "However, if it's 620 or below it's not so hot," said the member of the Board of Directors of the Airmen Memorial Foundation.

If you don't know your credit score you can get it for free once a year by going online to www.annualreport.com or by calling (877) 322-8228.

According to Dong, you can request a free report in the middle of the year from all three credit bureaus. "Some people elect to get a report from Equifax during the first quarter of the year, another free report from Experian the second quarter and one in the third quarter from Trans Union," he added.

If you discover any problems with your credit report call or write that credit bureau and dispute it, Dong advised. " You may even want to put a fraud alert on your file if there's a charge that was made on your credit card that you didn't make," he added.

Your credit score is very important, he stressed. "It can affect your ability to get credit. It can also affect how much credit you can get in terms of the amount of interest you will pay on a car loan or a mortgage.

Your credit scores are reviewed when you are purchasing or refinancing a home, buying a car, applying for any type of lease and being assessed insurance premiums, he added. It is also being reviewed when being considered for interest rates and annual percentage rates offered by creditors. [Annual percentage rate is the simplified counterpart to the effective interest rate that a borrower will pay on a loan.]

"Most people don't know that your credit report or score is also checked when you are interviewing for a job," he added.

"If you live in Washington, D.C., where I am from there are lots of jobs that require a security clearance," said the New York native. Ask yourself, "Would you want to hire someone who has financial issues for a sensitive position? Today more than ever employers are checking credit reports of job applicants when giving security clearances."

Credit scores are determined by your payment history, credit utilization (amounts owned), the length of your credit history, type of credit you have and the new credit you are seeking.

When you get your credit report you will see columns and columns with Xs and Os in the report indicating if you have paid your bills or not, he said. That's your payment history. Have you paid on time every time?

"Many of you may wonder how it is figured," Dong said. Say you charge $5,000 on your credit card. Do you have to pay the entire amount off at once when the bill arrives to maintain good credit? No. You do have to pay the minimum payment established by the credit card company.

When you get the credit card bill it will indicate your minimum payment is $20 for the $5,000 you charged. According to Dong, as long as you pay $20 before the due date of the bill each and every time you receive a bill until it's paid in full you are in good standing.

Pay history is also very important in maintaining good credit. It counts for 35 percent of the weight in determining your credit score. You want to be in the position of always paying the minimum payment on time.That's a check mark that says you have paid.

"You would be a whole lot better off if you pay the entire balance of the charge if you can," he advised.

Credit utilization, which is another component of your credit score, is how much you owe. Say you are making $40,000 a year and you have a $64,000 debt. That's too much. Credit utilization counts for 30 percent of the weigh in determining your credit score.

Another aspect that makes up your credit score is the length of your credit history. It makes up 15 percent of the weight of your credit score.

"I am a retired Army officer and I have had good credit for many years," he said. A young Soldier may also have a good credit history. He pays his bills on time every time. He has done this for five years.

Credit companies are going to like me better because I have a good credit score with a longer credit history, Dong explained. "That's figured in your credit score. I will have a higher credit score than the young Soldier."

Another component that makes up your credit score according to Dong is the type of credit you have. "This component will make up 10 percent of your overall credit score," he added. "If you take out a personal loan to buy a boat credit bureaus don't like that much."

According to Dong, new credit (inquiries) makes up the last 10 percent of a credit score.

"Let's say you go out looking to buy a car," he said. When the car dealer puts in an inquiry about your credit history it's considered a hard hit. That is someone is asking about your credit history.

"Let's say you decide to go shopping at a department store which is offering 10 percent off its merchandise," he went on. When you get to the checkout the cashier explains you can get an additional 10 percent off your merchandise today if you apply now for the store's credit card. You accept the offer.

The store will put in an inquiry of your credit report. That's considered a second hard hit.

"You start thinking a motorcycle would be nice to own," Dong said. So you stop at a motorcycle dealer and inquire about financing a new bike. The dealer puts in an inquiry about your credit history. That's considered a third hard hit.

This indicates to any loan officer that you are shopping around for credit. The more credit that's made available to you the riskier you appear to a loan officer.

"It's important you understand that if you request a copy of your credit report it's not considered a hard hit and it won't affect your credit score," added Dong.

If you decide to buy a house and visit three different banks shopping around for the best interest mortgage it will only counts as one hard hit. People recognize you are trying to get only one mortgage and not three at $300,000 each.

Dong encouraged everyone to learn more effective ways to manage your money through the free tools offered on the FINRA website, SaveAndInvest.org.