Financial Basics for Service Members

In the military, you can access various resources to help secure your financial future. Mastering financial skills is essential whether you're saving for retirement, planning to buy a new vehicle, or supporting your children's education. Using the tools and programs available to service members, you can take control of your finances and be prepared for unexpected events or opportunities.

Key Financial Basics

Saving and Budgeting

  • Track your monthly cash flow to understand your income and expenses.
  • Identify areas where you can cut costs, such as entertainment or unnecessary subscriptions.
  • Use free apps or software programs to manage your budget and expenses more effectively.

Borrowing

  • Understand the difference between good debt (e.g., mortgages, education loans) and bad debt (e.g., high-interest credit cards).
  • Develop strategies to decrease dependency on credit cards and pay down bills.
  • Stay on top of your credit score to maintain favorable borrowing terms.

Blended Retirement Essentials

  • The Blended Retirement System (BRS) provides retirement benefits to 85% of service members, including those not eligible for full retirement.
  • Start saving early to maximize the benefits and build a secure retirement plan.

Protecting Your Finances

  • Learn to safeguard your personal, military, and financial information from identity theft and scams.
  • Stay vigilant against fraudulent activities derailing your financial progress.

Resources for Service Members

Military OneSource

Military OneSource is a Department of Defense program that offers free resources and support 24/7 for active-duty, National Guard, and Reserve service members and their families.

Programs and Services Include:

  • Installation Financial Readiness Management Program: Offers counseling, seminars, classes, and assistance with financial education and stability.
  • Family Life and Military Counseling Program: Helps families plan for goals such as homeownership, education, and retirement.
  • Financial Counseling: Provides tools to manage checking accounts, reduce debt, create budgets, and make smart investments.

Benefits of Financial Counseling

  • Learn personal finance basics, including budgeting, debt management, and saving strategies.
  • Explore military savings programs like the Thrift Savings Plan (TSP) and the Savings Deposit Program.
  • Develop a debt-repayment plan with guidance from counselors.
  • Coordinate with organizations offering emergency financial assistance.
  • Receive support with resolving credit reporting issues and understanding consumer rights.

Additional Tools and Resources

Benefits.gov

Benefits.gov offers a wide range of information on available benefits for active-duty service members and veterans, including interest rate reductions, medical benefits, and educational resources.

Servicemembers Civil Relief Act (SCRA)

The SCRA provides eviction protection and interest rate reductions to active-duty service members.

Tax Preparation and Consultation

Access free tax preparation and consultations through Military OneSource. Call 800-342-9647 or visit their website for more information.

Final Thoughts

With the right tools and strategies, financial security is possible. By leveraging the resources available to service members, such as financial counseling and savings programs, you can create a stable and successful financial plan for every stage of life. Take advantage of these opportunities to secure your future and achieve your financial goals.

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Money Management | Banking