Written by: Clay Trusley, Kristen Jowers, and Nichole Huff
According to the 2023 Status of Forces Survey (DOD, 2025), the percentage of financially comfortable active-component service members dropped below 50% for the first time. Financial education and resources can reduce this strain before it escalates, preventing a crisis. During Financial Capability Month, military service providers have a timely opportunity to strengthen both family well-being and mission readiness.
The first step is helping clients assess their current financial well-being. Administer the 12-question Financial Well-Being Assessment for a snapshot of current financial health. This will lay the foundation for continued financial capability conversations.
Help Families Recognize Spending Patterns
Research shows military families often struggle with impulse spending and emotional purchases, which are stressors that can be heightened by deployment, relocation, or family separation (Castro & Kintzle, 2021). Financial strain can also impact job performance, relationships, and even security clearances. Service members can improve their financial well-being by building awareness of spending habits.
Keeping a spending log can help families visualize where their money goes. Service providers can assist clients in evaluating how their spending aligns with their personal values and long-term goals. For example, a family saving for a major purchase may decide to reduce nonessential purchases and create a SMART goal that is Specific, Measurable, Achievable, Relevant, and Time-bound.
Use Tools to Encourage Action
Equip families with budgeting tools they can implement right away. Start with ready-to-use templates like the Department of War’s Spending Plan Worksheet, built for service members, and ease the burden of building a plan from scratch. Additionally, the 50/30/20 budgeting rule (needs/wants/savings) can guide clients in adapting this to fit fluctuations in income during PCS season.
Tailor Budget Conversations to the Military Context
Use scenario-based learning tools and military family-friendly worksheets that reflect military-specific situations, like those provided by the Federal Trade Commission in their military report infographics and publications. Include military benefits such as Flexible Spending Accounts, Basic Allowance for Housing (BAH), Commissary privileges, and the Servicemember Group Life Insurance as examples. Teach families how to allocate funds for military-specific expenses like uniform replacements and relocation costs for an upcoming deployment or transition on their Spending Plan Worksheet.
Connect With Other Service Providers
Financial capability is a team effort. Consider how you can intentionally network with other military family service providers this month to share information and tools. Learn more about how to work with other service providers via the SBAR hand-off by watching this on-demand OneOp webinar, Supporting Military Couples Through Employment and Financial Transitions.
Financial Capability Resources
When we strengthen financial capability, we strengthen families. And when families are financially stable, service members are better prepared to focus on the mission.
Equip military families by:
- Locating a free Personal Financial Counselor (https://finred.usalearning.gov/pfcMap)
- Finding free financial education resources from the Office of Military Compensation and Financial Readiness (https://finred.usalearning.gov/Money)
- Attending an upcoming OneOp webinar for service providers working with military families (https://oneop.org/upcoming-webinars/).
References
Castro, C. A., & Kintzle, S. (2021). Military and veteran family well-being: The role of family financial readiness. USC Center for Innovation and Research on Veterans & Military Families.
U.S. Department of Defense. (2025). Annual Report on the Financial Literacy and Preparedness of Members of the Armed Forces – Results from the 2023 Status of Forces Survey. https://finred.usalearning.gov/assets/downloads/FINRED-2025-FinancialLiteracy-R.pdf?utm_campaign=YMMFSMR-Sept-2025
