Tips for Military Families' Finances

Managing finances as a military family can be challenging due to the unique demands and frequent relocations associated with military life. Here are some tips to help military families navigate their finances effectively:

1. Create a Budget:

• Start by developing a detailed budget that outlines your family's income, expenses, and financial goals. Stick to this budget as closely as possible.

2. Emergency Fund:

• Establish an emergency fund to cover unexpected expenses. Aim to save at least three to six months' worth of living expenses. Having this safety net can help reduce financial stress during deployments or emergencies.

3. Understand Military Pay and Benefits:

• Familiarize yourself with your spouse's military pay and benefits, including base pay, allowances, and any special pay or bonuses. Be aware of changes that may occur during deployments or promotions.

4. Save and Invest:

• Take advantage of the Thrift Savings Plan (TSP) or other retirement savings options. Both you and your spouse can contribute to TSP to secure your financial future.

5. Manage Debt:

• If you have debt, create a plan to pay it down. Consider using the Servicemembers Civil Relief Act (SCRA) benefits, which may lower interest rates on loans taken out before entering active duty.

6. Military Housing and Allowances:

• Understand your housing options. Depending on your circumstances, you may be eligible for housing allowances (BAH) or provided with on-base housing.

7. Utilize Military Discounts:

• Many businesses offer discounts to military families. Take advantage of these opportunities to save money on everyday expenses.

8. Insurance:

• Review your insurance coverage, including life insurance and health insurance. Ensure that you have adequate coverage for yourself, your spouse, and your family.

9. Financial Education:

• Take advantage of financial education resources available through your spouse's service branch, such as personal financial management programs and resources for military spouses.

10. Deployment Savings:

• If your spouse is deployed to a combat zone, consider the financial benefits such as special tax benefits and increased pay. Use this opportunity to boost your savings and pay down debt.

11. Powers of Attorney:

• Consider giving your spouse or a trusted family member a power of attorney to manage financial matters during deployments.

12. Avoid High-Cost Lending:

• Be cautious of payday loans, high-interest auto loans, and other predatory lending practices. These can lead to financial hardships.

13. Plan for Transition:

• If your spouse plans to leave the military, start early to plan for the transition to civilian life. Understand the benefits and resources available for veterans and military families.

14. Avoid Financial Scams:

• Be vigilant about financial scams targeting military families. Verify the legitimacy of any financial opportunity or investment.

15. Support and Networking:

• Connect with other military families, either on base or online, for support, information, and resources. Sharing experiences and tips can be valuable.

16. Stay Informed:

• Keep up-to-date with changes in military benefits and policies that may impact your family's financial situation.

17. Estate Planning:

• Consider creating a will and establishing powers of attorney for your family's financial affairs in case of deployment or other unforeseen events.

18. Maintain a Good Credit Score:

• Both you and your spouse should maintain good credit scores to access better financial opportunities. Pay bills on time and manage credit responsibly.

Managing finances as a military family requires careful planning, open communication, and adaptability. By following these tips and seeking financial stability, you can navigate the financial challenges that come with military life.