Cost of Living Strains Military Families’ Finances, USAA Educational Foundation Reports

Examining the Effects of Cost of Living and Other Factors on the Financial Well-being of Military Families

Mounting Pressures on Military Family Finances

Rising costs, frequent relocations, high living expenses near military bases, and high spouse unemployment rates – these are among the stressors that adversely affect the financial stability of military families according to the USAA Educational Foundation’s inaugural State of Personal Finance in the Military Community Report.

Key Factors Impacting Financial Growth

The report, which offers a comprehensive, data-driven perspective into the variables shaping personal finance for veterans, serving personnel, and their families, underscores the dual realities of military life. On one hand, these circumstances may limit the potential for higher income, savings, and retirement assets. On the other hand, many of these pressures are recurrent and foreseeable, such as Permanent Change of Station (PCS) moves or lower resilience to cost-of-living changes among younger service members. These present opportunities for improved financial planning and action to drive better outcomes.

Turning Insights into Action

“This report showcases the financial realities of our service members’ lives, illustrating financial strain among many families, as well as the positive effects that financial readiness can bring,” stated David Evetts, President, USAA Educational Foundation. “The data underscores the positive economic impacts of military service, while also stressing the need to address persistent problems like high spouse unemployment and PCS costs to maximize well-being. Together, we can convert these insights into actions that fortify the financial security of military families.”