3 A 2021 article in the Associated Press shows that too often this lack of financial positioning puts military families in dire situations. What does all of this go to show? The military has a personal finance problem.Īccording to a recent Military Family Advisory Network Survey, 60 percent of military families do not have enough savings to cover three months of living expenses. In fact, according to a DOD study, soldiers, sailors, and aviators are as many as four times more likely to be victims of payday lenders. As Tara Falcone, a certified financial planner and founder of the financial education company ReisUP, puts it, “Predatory lenders like to prey on young military members because they’re often inexperienced with money, have little to no credit and are usually very excited to spend that first paycheck.” 1 The DOD knows this is a problem. Military service members are constantly the target of predatory lenders. Under these terms, this $30,000 car will cost this soldier almost $82,000.

It purports to show a soldier who bought a 2019 Chevy Equinox at a 34.7 percent interest rate.

Using statistical observations of service members’ financial position, highlighting of current resources available to troops, and analysis of quantitative metrics, a comprehensive recommendation is made to combat this serious foundational issue.įigure 1 shows the re-creation of a screenshot that recently made its way around social media. This article explains the problem, its second and third order effects, and how this deficiency costs the government billions of dollars per year, reduces readiness, and makes the military more susceptible to coercion. Current methods of teaching personal finance skills have proven ineffective for the military audience. Despite significant and well-intentioned efforts by the Department of Defense (DOD), data shows that service members are comparatively worse off than their civilian peers in terms of financial literacy and stability.

Payday 2 trainer septenber 2017