FINRA Releases Survey of Military Families' Finances

The FINRA Investor Education Foundation released a survey that measures the overall financial capabilities of U.S. military personnel.  The Military Survey – one of three linked surveys analyzing the financial capability of American adults – was developed in consultation with the U.S. Department of the Treasury and the President's Advisory Council on Financial Literacy.  Some of the findings are predictable; others more surprising.  Thus, unfortunately, the  study reveals that men and women in uniform face considerable obstacles in maintaining their financial readiness:

• Military families are heavily in debt to credit card issuers, with over one in four respondents reporting more than $10,000 in credit card debt.
• One in four servicemembers with checking accounts reported overdrawing their accounts, which typically incurs significant fees.
• More than one in five (21 percent) servicemembers used high-cost, non-bank borrowing such as payday or auto title loans in the last five years.
• Over half of enlisted personnel and junior non-commissioned officers reported that in some months, they made only the minimum payment on their credit cards.
• Only 50 percent of military respondents have a "rainy day" fund for unanticipated financial emergencies.

However, more surprising perhaps, military families are outpacing their civilian counterparts in:

• keeping up with monthly expenses;
• calculating how much they need to save for retirement;
• shopping around to compare financial products;
• checking their credit score and credit report; and
• demonstrating higher levels of financial literacy.