Financial Planning for Military Families

By on January 7, 2019

Managing your personal finances is important to the security of every family, however, military families face different challenges when planning for the future, especially when service members are deployed. In order to meet these unique challenges, it is important for members of the military and their loved one’s to get their family finances in order.
Here are some financial planning tips to help families ensure their financial stability:

6 Financial Planning Tips For Military Families

Gather and Organize Your Financial Documents

Get your family on the same page by reviewing or making an annual budget. List all of your financial obligations, account numbers, contact information and any other information – such as benefits, insurance and service related documents – that may be needed in your absence. If you are being deployed or transferred, contact your creditors, mortgage lenders and financial institutions as soon as possible and keep a record of the correspondence with your important documents.

Review and Update Insurance Policies

Insurance policies are there to protect your family in the event something happens to you. Get the most out of your policies: Learn about service provided benefits and deployment benefit status. Review any other insurance policies you hold with private insurers. Confirm each policies beneficiaries and file paperwork to keep them up to date. Save money on car insurance when the deployed service members auto is not being used.

Build a Bigger Emergency Fund

Military families should try to build a larger than average emergency fund to cover expenses should deployment last longer than projected or in the event of ensuring a smooth transition for everyone in a major relocation. Financial experts recommend having 3 to 6 months of income saved in the event of an emergency. If it is possible to cut spending and save more, a military family could benefit from saving 6 to 12 months of income. There are a number of digital apps available to help you set and reach a savings goal. Don’t wait for orders to start building your emergency fund. And have a plan in place for this extra income to ensure it is not absorbed into your regular budget when it goes unused. You can add it to your retirement fund, help your children with college tuition, pay off consumer debt or invest it.

Estate Planning – Wills, Power of Attorney and Estates

If you have dependents, a spouse or children, which rely on you to contribute to the families income and financial safety, designate a trusted friend or relative to handle your financial affairs while you are away. This person should have legal authority to make certain or all decisions on your behalf. Set your will and plan the distribution of your estate in order to protect your family from devastating financial burdens in the event of your loss. Even if you take all the proper steps to ensure your family and finances are taken care of in your absence, understand that no one can predict the future. Major medical bills, accidents or other unforeseen circumstances may arise and you should know where your family can go to cover expenses and receive benefits.

Learn About Your Benefits

There are certain benefits extended to members of the military to protect them from great financial losses and help them build wealth despite their unique situation. Learn more about what options are available to boost your financial stability or make a difficult situation more manageable.

Ask a Financial Expert

Ask an experienced financial professional or military organization for help preparing your family and finances for deployment or relocation. Whenever possible seek guidance from other members of the military who are facing similar challenges. And continue to learn more about managing your personal finances so that together, you can successfully build a secure financial future.

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About Terri A. Kamoto

Senior writer for FSN - Terri is a former financial analyst dedicated to making personal finances, budgeting, investment and insurance advice accessible, up to date and easy to understand. It is hard to find professional advice written in a language someone without a financial background can understand. Terri helps companies synthesize industry lingo and expertise into clear and informative content which builds smarter, financially successful individuals. You can find Terri on !

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