From home life to work life, managing money when you or your spouse is in the military presents a unique set of challenges. Here’s a breakdown of what financial pressures military families say they’re dealing with, along with some tips to help keep your finances on track during and after your service.
[SECTION] Preparing for retirement
37% of military families say they are moderately or very insecure about their financial future.1
51% of families say they don’t understand the military’s new blended retirement plans.1
Military benefit: The 2017 National Defense Authorization Act established a new Blended Retirement System specifically for service members who serve at least two years but who don’t qualify for full military retirement benefits.
Where to start:
[SECTION] Saving money
49% of military families say they have less than $5,000 in available savings.1
Military benefit: The good news is that the highest line items in American civilian budgets (certain housing expenses, food, etc.) are largely taken care of for you as a service member.
Where to start:
[SECTION] Moving and home buying
31% of active service members who moved in 2017 bought a home more than 500 miles from their previous home. Only 11 percent of moving civilians went that far.3
Military benefit: Moving can easily disrupt your life — thankfully, as a member of the military, the government will pay up front or reimburse you for many permanent change of station (PCS) moving costs.4 The Veterans Administration offers home loans to service members who qualify with financing up to $453,100 — even if you have no money saved for a down payment.5 The VA also offers services that can help with refinancing, reducing interest rates and housing for disabled service members or veterans.6
Where to start:
[SECTION] Supporting your spouse’s career
28% of military spouses are unemployed and seeking work.1
$20K or less
The amount 51 percent of military spouses earned in 2016. And 39 percent earned less than $10K.1
Where to start:
[SECTION] Managing finances during service
44% of active service members and veterans say financial pressure has been detrimental to their emotional and mental health.8
Military benefit: With a Department of Defense savings account an active service member can deposit $10,000 per deployment with an interest rate of 10 percent.9
Where to start:
[1] “2017 Military Family Lifestyle Survey,” Blue Star Families and the Institute for Veterans and Military Families, November 2017.
2 “The Blended Retirement System Explained,” Military.com, 2018.
3 “Veterans & Active Military Home Buyers Profile,” National Association of Realtors Research Group, May 2018.
4 “Military Spouse and Family Moves 101,” Military.com, accessed August 2018.
5 “VA LOANS,” Miliatry.com, accessed August 2018.
6 “VA Home Loans,” U.S. Department of Veterans Affairs, accessed August 2018.
7 “How To Plan Successfully With Your Spouse To Achieve Your Biggest Career Dreams,” Forbes, March 2018.
8 “Military Family Support Survey 2017 Results,” Military Family Advisory Network, 2017.
9 “DoD Savings Deposit Program,” Defense Finance and Accounting Service, accessed August 2018.
10 “The Base Pay for a Deployed E4 Specialist in the Army,” Chron, June 2018.
Looking for some ways to give your financial life a jump start? Check out these 9 simple ways to save.