Harris: Military Money Matters

By Charlestien Harris

July 26, 2025 – ATTENTION – July is National Military Consumer Month! I discovered this little-known fact while conducting research for my weekly article. We enjoy our freedom in this country thanks to the dedicated service members who protect it with honor. In recognition of their sacrifices, I decided to highlight some financial issues that can derail the financial success of military consumers.

The life of a service member is often stressful and challenging. Frequent relocations can take a significant toll on the financial stability of military personnel, whether they are individuals or part of a family unit. These challenges are just a few examples of the financial hurdles military consumers face while trying to balance personal finances with a demanding military lifestyle.

Here are five specific financial challenges commonly faced by military members and their families:

Challenge #1: Managing High Debt Levels
Many military families carry substantial debt, including credit card balances and personal loans. On average, military families relocate every two to three years, often incurring unreimbursed expenses such as temporary housing, multiple deposits, and service fees necessary for adapting to a new environment. These costs can strain household finances, with at least 70 percent of individuals reporting out-of-pocket expenses exceeding $500, according to a survey by the Tennessee Credit Union League.

Challenge #2: Difficulty Saving
Frequent relocations can hinder the ability to save money. Common barriers include insufficient pay, inflation, and high housing costs. The Basic Allowance for Housing (BAH) is intended to help service members afford adequate housing in their assigned area. It is a crucial part of military compensation, determined by location, pay grade, and dependency status. However, BAH often does not fully cover housing expenses, making it difficult for families to save.

Challenge #3: Establishing Emergency Savings
According to the Military Family Advisory Network, at least 27.4 percent of currently serving military families have less than $500 in emergency savings. Even more concerning, 49.2 percent of those families lack a practical plan for seeking assistance during a financial emergency and do not have the means to contribute to an emergency fund. Financial stress is a significant concern for a large percentage of military families.

Challenge #4: High Housing Costs
Although previously mentioned, high housing costs remain a persistent challenge. Factors such as relocation, low pay, and limited affordable housing options contribute to this issue. Many military families pay more than they can reasonably afford for housing.

Challenge #5: Spouse Employment Challenges
Military spouses often face difficulties in finding and maintaining employment, which adds to financial strain. The rising cost of living – especially in areas with high concentrations of military personnel – can severely impact budgets. Deployments may lead to unexpected expenses, including childcare, travel, and communication costs. These are often covered by the income of a working spouse, if employment is available.

We extend our heartfelt thanks to military families for the many sacrifices they make to keep our country safe and free. By bringing attention to the financial challenges they face, we can better understand why these issues accumulate so quickly. Hopefully, this awareness will inspire us to develop actionable solutions to support our service members and their families.

For more information on this and other financial topics, you can email me at charlestienharris77@gmail.com or write to P.O. Box 1825, Clarksdale, MS 38614. 

Until next week – stay financially fit!

Charlestien Harris is our financial contributor, a retired financial expert with Southern Bancorp Community Partners.