Let me tell you a true story. When I was in the Army, roughly 2 years after we had gotten back from Iraq, I distinctly remember one of my friends making fun of another guy in our unit because "he still had all of his money from deployment in a savings account". We didn't save money to such a degree that we were literally making fun of someone who did. Now, 11 years after getting out, I look around at the friends I served with and many of them have asked me for help trying to save money. Funny how things come back around, but the real question is - with something as important as good money habits, why were all of us on such a bad path?
In this post, we’ll explore the unique financial challenges veterans face and how they can start taking control of their money.
Why Veterans Weren't Focused on Finances
For many veterans, financial education wasn't a priority while they were serving. Active-duty life is often fast-paced and unpredictable, with more focus on immediate duties than long-term planning. For younger service members especially, budgeting, saving, and managing debt may seem less important, especially since they have housing, food, and most other typical expenses provided by the military.
Additionally, financial literacy isn’t a core part of military training. While the military offers personal finance resources, they are often optional, difficult to access, and can get overlooked in the busy schedule of training and deployments. Many veterans find themselves discharged with minimal knowledge on how to manage their money, build emergency savings, or stay out of debt. Let's dive into that a bit further.
Common Themes When Veterans First Leave the Military
Transitioning back to civilian life can be difficult for many veterans, especially when it comes to money. Here are some of the most common challenges they face:
Loss of Benefits: In the military, housing, healthcare, and other essentials are often covered. Then, one day you're out and are faced with new expenses and no training on how to properly handle them.
Struggles with Employment: While veterans often gain valuable skills in the military, finding a job in the civilian world can be challenging, particularly for those without higher education. This can lead to periods of unemployment or underemployment, putting pressure on their finances and making it hard to save.
Increased Cost of Living: Many veterans discover that civilian life is more expensive than they anticipated. They may have to manage rent, groceries, utilities, and other monthly bills on their own for the first time. Without a strong budget or emergency savings, it’s easy to fall behind and start accumulating debt.
Mental Health Challenges: Some veterans struggle with mental health issues, such as PTSD or anxiety, which can make financial planning more difficult. In some cases, these challenges lead to impulse spending or avoidance of financial planning altogether, which leads to increasing debt over time.
The sudden financial responsibilities and added challenges of civilian life can lead to stress and frustration for veterans who are already navigating a major life transition. This becomes particularly true for veterans who served for longer
Why Bravado Makes it Worse
Military culture often emphasizes strength, independence, and resilience. While these traits are valuable in war settings, they can sometimes prevent veterans from seeking help when they need it—especially with money. Many veterans feel a sense of pride in being able to handle their own challenges and may avoid asking for guidance, viewing it as a sign of weakness. Unfortunately, this attitude often times perpetuates financial problems. Without reaching out for help, veterans may struggle in silence, accumulating debt and finding it harder to budget or build savings. However, seeking advice and support with money isn’t a weakness—it’s a smart way to gain control over finances and secure a stable future. I often say - the two most powerful things you can say are "I don't know" and "I need help". Financial literacy and planning helps veterans not only build security, but also reduce the stress that comes from financial uncertainty as they transition from the military to what feels like a world of uncertainty.
Conclusion
Transitioning out of the military is a major life change, and finances are a big part of that journey that few talk about. If you’re a veteran facing financial challenges, remember you’re not alone, and support is available. By taking small steps toward budgeting, managing debt, and building emergency savings, you can create a secure financial future. And if you need guidance, don’t hesitate to reach out. Whether through free resources or services like Francetic Financial Coaching, there’s help available for veterans ready to take control of their finances.
Free Financial Resources for Veterans
If you’re a veteran looking for financial support, there are free resources available to help:
Veterans Benefits Administration (VBA): The VBA offers financial counseling for veterans, helping them manage VA benefits and understand their financial options.
Operation Homefront: This nonprofit provides emergency financial assistance to veterans, including help with rent, utilities, and critical expenses.
Financial Readiness Program (FRP): Many military installations have an FRP that offers free financial planning and counseling services to veterans.
Military OneSource: Military OneSource offers free financial counseling for active-duty members, veterans, and their families. It covers budgeting, debt, and retirement planning.
FAQs About Financial Challenges for Veterans
1. What are the main financial challenges veterans face after leaving the military?
Veterans often struggle with budgeting, as they face new and unexpected expenses related to housing, food, healthcare, and finding a new job.
2. Why is it hard for veterans to manage their finances?
Many veterans aren’t taught financial skills during their service, and often joined at young ages where they would be relying on a parent to have taught them. They may lack experience with budgeting, saving, or managing debt due to the financial support they received from the military while on duty.
3. How can veterans start building emergency savings?
Starting small is key. Set aside a little each month, even if it’s only $20 or $50. Over time, these small contributions add up and can create a safety net for unexpected expenses.
4. Are there financial resources available specifically for veterans?
Yes, many organizations offer free financial counseling, budgeting assistance, and debt management resources specifically for veterans. Reaching out to these organizations can be a great way to get support.
5. Can veterans get help if they’re struggling with debt?
Absolutely. There are nonprofits and financial services that help veterans create a plan to pay down debt and improve their financial situation. The VA is always a great place to start!
FAQs About Francetic Financial Coaching
1. What makes Francetic Financial Coaching different for veterans?
As a veteran-owned business, I have been there and understand the unique challenges veterans face. I provide personalized coaching that respects your experiences and meets your needs.
2. How can Francetic Financial Coaching help veterans struggling with budgeting and debt?
I offer practical guidance on budgeting, debt management, investing, and building emergency savings, tailored to veterans. My services are designed to be supportive and empowering.
3. Do you offer discounts for veterans?
Yes, I am proud to offer discounts for veterans. Contact me to learn more about the support I can provide at a cost to fit your budget.
4. What should I expect in a coaching session?
Your first session is a free introductory meeting where we discuss your financial goals, challenges, and priorities. If you choose to move forward, in my Game Planning session we develop a budget, action plan, and outline next steps based on your needs.
5. How do we schedule an introductory call with Francetic Financial Coaching?
To book an introductory call, visit https://tidycal.com/franceticfinancialcoaching/qacall, or you can head over to www.franceticfinancialcoaching.com for more information. I’d love to discuss how we can help you achieve your financial goals!
Comments