Military families make incredible sacrifices, often navigating deployments, relocations, and the challenges of maintaining a stable home life under unpredictable circumstances. These unique demands can put considerable strain on their finances, making careful money management a crucial aspect of their daily lives. Recognizing this, First United Bank & Trust has outlined seven valuable financial tips specifically designed to lighten the load for military families. These tips aim to provide practical solutions and peace of mind, making it a little easier to focus on what truly matters—their family, career, and future.
“Military families do an incredible service for this country and we thank you,” said Carissa L. Rodeheaver, Chairman of the Board, CEO & President. “The nature of their jobs is inherently stressful – but financial stress shouldn’t be part of it.”
Financial Advice for Military Families
1. Contribute to a Thrift Savings Plan
Military members can take advantage of the Federal Thrift Savings Plan, a retirement-savings plan that is not only accessible but also highly affordable. This program stands out for its extremely low fees, making it an excellent tool to prepare for the future. Participants can simplify the process by having contributions automatically deducted from their paycheck. Whether saving for life after service or securing financial stability, this program offers an easy and cost-effective way to build long-term wealth.
2. Plan for Deployment
Before deploying, have a conversation with your family about managing the household budget. Consider granting power of attorney to your spouse, should they need to make any 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, whether it be paying off debt or additional Savings Plan contributions.
3. Meet With Your Banker Before Active Duty
The Service Member Civil Relief Act provides a range of financial protections for military personnel entering active duty, helping alleviate financial stress during service. This law addresses issues like reducing interest rates on loans, preventing excessive debt accumulation, and safeguarding housing and lease agreements. These provisions aim to make managing finances easier for service members during active duty. Speak to your banker about the key benefits and how this law might assist in easing financial burdens.
4. Consider Housing Options
Frequent relocations and deployments can make owning a home complicated and costly for individuals or families. These constant changes often bring challenges like selling a home quickly or dealing with fluctuating property values. Renting, on the other hand, can be a practical choice for those on short-term assignments, offering flexibility and fewer long-term commitments. Carefully consider your family’s needs and financial situation when deciding which option offers more convenience and stability for your current circumstances.
5. Consult a Financial Advisor
Schedule a visit at a Personal Financial Management Program (PFMP) office, conveniently located in your military and family support centers. These offices provide free, personalized financial counseling sessions where experts can guide you through budgeting, managing debt, and planning for the future. Along with one-on-one support, they also offer a variety of financial education resources tailored to help you make informed decisions, build confidence in handling your finances, and achieve your personal financial goals.
6. Budget for a Single-Income Household.
Frequent moves are a common part of military life, often making it challenging for spouses to maintain steady careers. To prepare for these transitions, it’s helpful to create a household budget that relies on a single income. By planning ahead and focusing on financial stability, your family will be better equipped to handle any changes that come with temporary gaps in employment. This proactive step can provide peace of mind during uncertain times.
7. Set Up Automatic Bill Pay
Whether you are stationed state-side or overseas, automatic bill pay provides a simple and convenient solution for managing monthly expenses. It reduces the stress of remembering payment deadlines, freeing up time and energy for other priorities. This is especially valuable during deployments in areas with unreliable internet or limited access to mobile banking. By automating your bill payments, you can feel confident that your obligations are being handled, allowing you and your family to focus on what truly matters.
Secure Your Family’s Financial Future Today
At First United Bank & Trust, we understand the unique challenges military families face, and we’re here to help. From savings accounts designed to grow with your goals to low-interest loan options, our tailored financial services are built with your needs in mind.
Take the first step toward a more secure and stress-free financial future. Whether you need expert advice or tools to manage your money, contact us today.