Military Money Management

A Fresh Look at Finances forMilitary Personnel

Soon-to-Be Deployed 

Use Limitations. These materials are intended for non-commercial educational and instructional use only. These materials may not be used in connection with any sale, advertisement, endorsement or promotion of any service, product, person or business and may not be commercially published, sold or offered for sale.

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Money and DeploymentCommunication is crucial to successful deployments, but many families avoid talking about money. Married couples often argue about finances instead of openly discussing them. Parents do not always share their financial worries or concerns so that their military sons and daughters understandtheir situation.

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Making a PlanThis program will help members of the military craft a financial strategy that will serve them while they are serving their country.

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ObjectivesToday’s objectives are to help you: Review your current financial situation. Create or complete a financial checklist. Develop a spending plan. Plan a reserve fund. Commit to an

action plan.

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Financial Review Do you have your finances in order? What current issues should be part of a family

discussion about money? Do you know all of your military benefits?

http://militarypay.defense.gov/benefits/militaryben.html

Review IRS Publication 3, Armed Forces’ Tax Guide, to take advantage of military tax benefits.

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Financial ChecklistWhen you are called to duty, it’s important to communicate with your family how to handle:Bank accountsCredit cards Monthly expensesInsuranceLegal responsibilitiesUnexpected expenses (repairs)Non-monthly expenses (insurance premiums)

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Money Talks Initiating and maintaining an open line of

communication about finances with your spouse and family members before you deploy is essential to a sound money management strategy.

Get to know your military branch’s ombudsman network before you deploy.

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Your Spending Habits Knowing your spending habits is the first step to

correcting bad habits and reducing stress. Managing money means making choices.

There’s not enough money for everything we want.

Sometimes, there’s not enough for what we need, unless we plan for emergencies.

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Your Spending PlanIncome and expenses can be affected by: Being deployed Unexpected events Long-term goals Spousal unemploymentIt’s important to communicate with family on priorities and expenses and develop a spending plan together.

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Four-Step Spending PlanHow do I use my spending plan? Experiment with ideas for cutting expenses and

recalculate the plan. Follow your plan for one month. Write down what you

actually earned and what you actually spent.

Review the plan and adjust it to create a spending plan for next month.

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Starting a Reserve FundDeployment puts new strains on your budget. These new expenses can include:Child-care expensesIncome changesHealth-care costsMeet these needs by creating a “reserve” savings fund.

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Building the Reserve FundSaving a little at a time adds to your financial security. You’ll be surprised how quickly a reserve fund grows. Take it step by step:

Review your expenses and see where else you can economize.Put that money in a reserve account.Build the account one day at a time.Start saving today!

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Protecting Your Family Finances Servicemembers’ Group Life Insurance:

Coverage up to $400,000 in increments of $50,000.

Cost of approximately $90 annually for every $100,000 of coverage.

www.insurance.va.gov or 1-800-419-1473 Identity theft: Place an “active duty alert” on

your credit report.

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Legal Issues and Scams Servicemembers’ Civil Relief Act:

Covers rental agreements, security deposits, credit card interest rates, and other financial issues.

Contact the nearest Armed Forces Legal Assistance Program office for assistance.

Beware of scams specifically targeting members of the military and your families.

Payday loans: Steer clear of predatory lenders—the interest rate can be as high as 36 percent!

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SummaryToday, you learned how to take charge of your finances by:Assessing your current financial situation.Planning how to discuss money with your spouse and/or family.Identifying sources of income and expenses.Creating a spending plan.Establishing a reserve fund.

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My Action PlanFollow through by focusing on your: Commitment

What I plan to do. Obstacles

What I may face. Action

Steps to my success. Understanding

What I learned today.

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