Financial planning month: A guide for military families

Tamika Sherman Avatar

By Tamika Sherman

Updated on Dec 5, 2024

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After a ceremony held at the Fort Jackson, S.C., Post Theater on June 22, graduates of the Drill Sergeant Course, class 008-16, take time to reacquaint with their friends and family members. Candidates at the U.S. Army Drill Sergeant Academy spend a total of 63 training days learning the art of inspiring, motivating, and mentoring new Soldiers in Basic Combat Training. (U.S. Army photo by Sgt. 1st Class Brian Hamilton/ released)
After a ceremony held at the Fort Jackson, S.C., Post Theater on June 22, graduates of the Drill Sergeant Course, class 008-16, take time to reacquaint with their friends and family members. Candidates at the U.S. Army Drill Sergeant Academy spend a total of 63 training days learning the art of inspiring, motivating, and mentoring new Soldiers in Basic Combat Training. (U.S. Army photo by Sgt. 1st Class Brian Hamilton/ released)

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October is Financial Planning Month, making it the perfect time to get your finances and budgets in order before the busy holiday season and the new year. For military families, the unique demands of military life require careful financial planning—both short-term and long-term. Whether you’re preparing for hefty holiday expenses, a PCS move, or planning for retirement, this is an ideal time to review your financial goals and strategies.

Short-Term Financial Planning Tips

Short-term financial planning is essential to manage immediate expenses, especially with the holidays fast approaching. Here are a few tips to help military families get ahead:

  1. Create a Holiday Budget:
    • With gifting expenses around the corner, set a clear budget for holiday spending. Make a list of everyone you need to buy for and determine a reasonable amount for each person.
    • Consider a sinking fund where you set aside funds each paycheck leading up to the holidays, so the expenses don’t feel overwhelming in one go.
  2. Build an Emergency Fund:
    • Having an emergency fund is critical for handling unexpected expenses like car repairs, medical bills, or emergency travel.
    • High-yield savings accounts are a great place to store your emergency fund since they offer higher interest rates than regular savings accounts.
  3. Track Your Spending:
    • Use budgeting apps or spreadsheets to track where your money goes each month. Knowing where your money is being spent is the first step in finding areas where you can cut back and save.
  4. Take Advantage of Military-Specific Resources:
    • Military OneSource offers free, personalized financial counseling services to help you set financial goals, create budgets, and manage your money wisely. This service is available by phone, video chat, or in person.
    • Military and Family Life Counseling Program also provides free financial counseling services, giving you tailored advice on managing your short-term and long-term finances.
    • Installation Personal Financial Management Program offers financial counseling at local military installations, with professionals who understand the unique challenges of military life.

Long-Term Financial Planning Tips

Long-term financial planning is key for achieving financial security, preparing for retirement, and protecting your family’s future. Here are some tips and resources to guide you:

  1. Start Saving for Retirement:
    • The earlier you start saving for retirement, the better. Military families can benefit from the Thrift Savings Plan (TSP), a retirement savings and investment plan available to service members. Consider contributing a portion of your income to the TSP and take advantage of matching contributions for blended retirement system participants.
    • First Command Financial Services is another excellent resource for military families seeking professional advice on long-term financial planning, including retirement savings, investing, and wealth management. Whether you are a two income household or one, you can open retirement accounts for both you and your spouse and contribute through a monthly allotment. 
  2. Invest Wisely:
    • Explore different investment options, from stocks and bonds to mutual funds. Using platforms like FINRED (Office of Financial Readiness), military families can access in-depth resources on investing, credit management, and long-term financial strategies.
    • Financial advisors from First Command can help you create a long-term investment strategy that fits your financial goals, whether it’s growing your portfolio or securing a college fund for your children.
  3. Manage Credit Responsibly:
    • Good credit is vital for long-term financial stability, especially when it comes to major purchases like homes or vehicles. Keep your credit utilization low, make timely payments, and monitor your credit report for errors.
    • Use tools like the Military OneSource free tax-filing service (MilTax) to keep your finances in check and ensure you’re making the most of available tax credits and deductions.
  4. Prepare for PCS Moves:
    • Frequent relocations can put a strain on finances. Creating a PCS budget will help you cover moving costs and settle into a new area without financial stress. Use resources like MiMM (Military In My Move), a virtual learning experience that provides training on managing finances during relocations.
  5. Utilize Military-Specific Mortgage Options:
    • If you’re planning to buy a home, consider VA loans, which offer lower interest rates and require no down payment. USAA and Chase are two financial institutions that provide VA loans, making it easier for military families to secure affordable housing.

Why Consider a Financial Advisor?

While many military families successfully manage their finances on their own, there are benefits to working with a financial advisor—especially if you’re looking for guidance on more complex financial decisions. Financial advisors specialize in offering comprehensive financial planning, investment advice, and retirement strategies. By using a financial advisor, you’ll get tailored advice on how to meet your financial goals, navigate the complexities of military pay, and plan for life after service.

Helpful Resources for Military Families

In addition to First Command, there are several other resources designed to help military families with financial planning:

  • Military OneSource: Offers free financial counseling services and MilTax, a free tax filing service.
  • Installation Personal Financial Management Program: Available on military installations, offering personalized financial advice.
  • Military and Family Life Counseling Program: Provides free financial counseling services to service members and their families.
  • MiMM (Military In My Move): A virtual learning platform offering training on financial management, specifically designed for service members and their families.
  • Blue Star Families: Assists with various financial challenges, including child care support for up to 12 months.
  • USAA & Chase: Both offer VA loans and military-friendly financial products, such as credit cards and mortgage options.

Financial Planning Month is a perfect time for military families to assess both short-term and long-term financial goals. Whether you’re preparing for holiday spending, managing a PCS move, or saving for retirement, there are numerous resources available to help you succeed. By taking advantage of free financial counseling, investing wisely, and building a strong savings foundation, you can create a secure financial future for your family.

Now is the time to take control of your finances and plan for the road ahead.