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How to Manage Common Military Finance Challenges


Reading time - 3 minutes, 30 seconds 


One of the largest burdens on military families is finances. The worst financial times for military families are the first two months after deployment and the first two months after returning. To avoid adding financial stress to your life, read below to learn about some of the most common financial hurdles for military families and tips for managing them.

Common Military Finance Challenges for Families

Spouse Employment

Roughly 60 percent of U.S. families are dual income, but those numbers don't hold for military families. According to the Blue Star survey, only 43 percent of military spouses are employed - and many don't want to be. Strive to build a lifestyle based on one income. Alternatively, develop a spending plan where you can cover your fixed core expenses with military pay and allowances. If your family has two incomes, focus on building a cash cushion for when you may not be in the same situation. 

Uncertainty in Deployment

Military families face big questions that make planning hard. When will you move again? Is a deployment in the cards? Should you rent or buy? Will you be able to continue your career or get a job at the next duty station? Will you be caught up in force shaping? There are no guarantees for today's military family, which makes it especially important to plan and save up for unexpected expenses. 

Potential Changes to Benefits

Military retirement and health care are targets for change. As government spending is constantly changing, don't rely on your current benefits when planning on the future. To prepare for possible military retirement changes, start or save more in your savings account. Whatever the outcome, you'll be better prepared. And don't forget to make sure your voice is heard for government spending by contacting your representatives and supporting organizations. 

Unique Housing Needs

Deciding where to live and how much you can afford is never easy. But with frequent and sometimes abrupt moves, military families might have it even harder. If you expect to be in the area for at least five years, buying can be a good idea. But if you are likely to move again soon, avoid homeownership's financial stresses and opt for an option like military housing that allows you to move quickly and use your basic allowance for housing to cut costs.

Communication at Home

The number one issue deployed service members worry about is how they'll communicate about subjects such like finances, child care, and family decisions. Take time to sit down and discuss financial basics like what and when bills are due, where receipts are kept, who will perform which household roles, and which budgets to maintain. Communicating openly about finances before, during, and after deployment relieves tension and stress. 

Military Financial Assistance & Tips

Consider a Second Job

More work means more money. If you are a military spouse with extra time, look into a second job to supplement extra cash flow. There are plenty of online jobs that you can do in your spare time, or you can look for local, part-time job openings in your area. 

Create a Family Budget

Having a budget might be one of the most important financial tips. While you don't have to strictly stick to a budget, keeping track of your spending and planning for future expenses will make sure you aren't spending more than you make. This is an important step to do as a family before deployment and should be reviewed regularly. 

Look for Everyday Savings

As a military member or a military dependent, there are many deals and discounts available to help keep spending low. Look for coupons, and don't be afraid to ask if military discounts are offered. Companies are happy to help make spending easier on military families from clothing and groceries to hotels and flights.  

Minimize Debt

Debt is one of the most detrimental things to finances and one of the easiest to fall into. Creating a budget and planning should help you avoid going deeper into debt, but it is also important to work toward paying off any past debt. Minimized debt means a higher credit score and more buying power for big life decisions down the road. 

Prepare for Tax Season

With everything already on your plate, preparing for tax season is easy to forget until it's crunch time. Save yourself time and sanity by keeping a file of everything needed to file your taxes when the time comes, so you aren't rushing at the last minute. This keeps you organized and ensures you aren't missing anything when it comes time to file. 

Take Advantage of Benefits

Just like with everyday savings, military families can take advantage of even more savings through military benefits. Look into how much you can save on healthcare, insurance, housing, education, and more to help relieve some of the financial strain of military life. It doesn't hurt to apply for scholarships as well for an added boost. 

Tackling your finances doesn't have to be an added stressor in your already hectic military life. Use these tips to overcome common military finance challenges and feel more confident in your saving and spending. All it takes is planning and communication to get yourself on the right track!

 Related: Financial Readiness: Uncommon Cents

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