Empowering Current & Former Members of the Armed Forces

Members of the armed forces, past and present, have sacrificed and continue to sacrifice for our most basic freedoms. And while many of those sacrifices are well-documented, one that is often overlooked comes at the expense of their own financial goals and health.

As a military mom, I’m very familiar with how frequent deployments and relocations, coupled with the irregular nature of military pay, can disrupt active-duty servicemembers’ ability to manage day-to-day finances, let alone plan for long-term financial goals. I can only imagine the complexities once our servicemembers transition into civilian life. The loss of active-duty benefits, scrambling to find health care coverage for themselves and their family, searching for adequate housing, paying for groceries and finding employment only add to an already stressful situation. With all these hurdles, maintaining a positive financial outlook can be difficult.

According to a recent Experian survey, 65% of U.S. adults experience negative thoughts, flashbacks and/or anxiety when dealing with financial issues. In a separate survey, we found 48% of U.S. adults feel somewhat or very ​financially​ restricted, while 54% of Americans believe they will never be financially free. Now, imagine if those numbers were specific to members of the military and their families.

Let’s put that into perspective. According to USA Facts, as of September 2023, there were 2,079,142 military personnel; the Department of Defense (DoD) listed nearly 1.29 million people as active-duty troops and 767,238 as national guard/reserves. And according to the Pew Research Center, there are more than 18 million living veterans in the U.S., representing about 6% of the country’s adult population.

As a society, we have a responsibility to help our current and former members of the armed forces; it’s the least we can do. For those in the credit union community that means empowering them with the financial knowledge and resources to navigate the mainstream financial system and improve their financial well-being.

Leading With Financial Literacy

One of the more significant barriers facing most consumers is the lack of financial knowledge. More than half of Americans (55%) feel that access to more financial education would help alleviate their financial stressors. The same could be said for members of the military.

But we can’t share a one-size-fits-all program. Each person is ​at a different​ stage in their journey. The challenges that military personnel encounter are very different from those of civilians. Effective financial literacy programs meet people where they are, with information they need, when they need it and are open to receiving it.

By equipping them with the specific knowledge and tools to manage their money effectively, credit unions can help alleviate some of the financial stress and empower servicemembers to take control of their financial futures.

Moreover, financial education lays the groundwork for long-term stability beyond their military service. With essential financial literacy skills, servicemembers can better prepare for the transition to civilian life, navigate complex financial landscapes and avoid common pitfalls, such as debt accumulation or predatory financial practices. Credit unions that prioritize providing comprehensive financial education demonstrate a commitment to supporting the well-being and success of those who serve our country, fostering a sense of trust and loyalty within the military community.

Meeting Our Servicemembers and Veterans Where They Are

Before credit unions can help our current and former military personnel, they need to understand their day-to-day challenges. That means collaborating with non-profits, community leaders and other organizations that have existing relationships with them. It opens the door to engage our current and former servicemembers, listen to the challenges they’re experiencing first-hand, and most importantly, make a real impact.

For example, the San Diego-based Support the Enlisted Project (STEP) has been at the forefront of bringing financial literacy to servicemembers for more than 12 years. The organization actively helps military families with short-term financial assistance and educates them about financial and credit concepts that can open doors of opportunity.

Partnering with STEP and other community, mission-driven organizations enable credit unions to play an important role in helping to build a sound financial future for active-duty and former military personnel.

As more credit unions introduce products and services to assist servicemembers, this increases the financial knowledge within the current and former military community. These financial literacy programs available to current and former members of the armed forces establishes trust, empowering them to ​achieve​ their financial goals.

Abigail Lovell is Experian’s Global Chief Sustainability Officer.