Service members and their families make many sacrifices to protect our nation. If you are in the military, were in the military, or have a family member who is in the military, THANK YOU! We appreciate everything you go through and risk for us. To make your life easier, the American Bankers Association has highlighted these seven financial tips.
Military members and their families will have stressful lives inherently. Financial stress shouldn’t be part of it. The following tips will move service members toward a strong financial future:
· Contribute to a Thrift Savings Plan. Military members have access to the Federal Thrift Savings Program. It offers the lowest-cost retirement-savings plan available. Have automatic contributions withdrawn from your paycheck.
· Plan for deployment. Before deploying, have a conversation with your family about managing the household budget. Consider granting power of attorney to your spouse. What if they need to make an urgent financial decisions while you are gone? Check with your bank to see if they have pre-printed forms you can use for bank accounts. Military personnel also receive additional funds while deployed. Decide on the best use for that extra cash. Paying off debt or more Thrift Savings Plan contributions?
· Meet with your banker before active duty. The Service member Civil Relief Act offers all military personnel entering active duty a variety of financial protections. The SCRA covers issues ranging from interest rate reductions to limits on debt accrual. Ask your banker about the key provisions of this law and how they can help you.
· Consider housing options. With mortgage rates at notably low levels, home ownership can seem like a no-brainer. But, service members should consider their options. Frequent relocations and deployments can make owning a home challenging and expensive. Renting may be a smart option for short-term assignments. Decide what’s best for your family and your finances.
· Consult a financial adviser. Schedule a visit at a Personal Financial Management Program (PFMP) office, located in your military and family support centers. They offer free one-on-one counseling, as well as other financial education resources.
· Budget for a single-income household. Frequent moves are an inevitable part of military life. This can make it difficult for spouses to establish stable careers. As a precaution, make plans to operate on a single-income household budget. That way, should your spouse’s employment status change; your family is prepared.
· Set up automatic bill pay. Whether you’re stationed state-side or overseas, automatic bill pay gives you and your family one less thing to worry about each month. During deployments in regions where internet access is unreliable and mobile banking isn’t an option, it can be helpful.
Do you have anything to add? Let us know in the comments!
