Navigating finances during deployment can be a daunting task for military families. With 28% of these brave households reporting financial issues as one of their greatest concerns, it’s clear that guidance is needed.
This blog post provides concrete strategies to manage funds effectively during deployment, from placing active duty alerts on your credit to exploring low-cost investment opportunities.
Ready to achieve financial stability while serving our country? Let’s dive in!
Key Takeaways
- Place active duty alerts on your credit to protect against fraud and unauthorized transactions during deployment.
- Inform your financial institution about your deployment to access special benefits and support tailored for military personnel.
- Avoid foreign transaction fees by using credit cards with no fees or exchanging currency before traveling overseas.
- Set up automatic payments for bills and loans to avoid late fees or missed payments while deployed.
- Utilize the Servicemembers Civil Relief Act (SCRA) for financial protections such as lower interest rates and eviction safeguards.
- Take advantage of free credit monitoring services to stay informed about any potential threats to your credit profile.
- Consider living in military housing or seek assistance through programs like MHAF or HAP for housing support during deployment.
- Educate yourself about low-cost investment opportunities like index funds or ETFs for long-term growth and diversification of finances.
- Earn interest in a high – interest savings account to maximize savings during deployment and reach financial goals faster.
- Financial issues are among the greatest challenges faced by 28% of military families, according to the National Military Family Association.
- Getting a job as a military spouse can be helpful financially.
- Using available resources, such as credit monitoring services, is important for protecting financial well-being.
- Preparing a monthly budget is crucial before deployment.
Tips for Managing Finances During Deployment
During deployment, it is crucial for military families to manage their finances effectively. To help with this, active duty alerts should be placed on credit accounts and the financial institution should be notified about deployment.
Foreign transaction fees should also be avoided, bill and loan repayments must be managed efficiently, and the Servicemembers Civil Relief Act can provide protections. Additionally, seeking free credit monitoring, utilizing housing resources, learning about low-cost investment opportunities, and earning interest in a high-interest savings accountare all beneficial strategies to consider.
Place Active Duty Alerts on Your Credit
Placing Active Duty Alerts on your credit reports can be an effective way to protect your financial health while serving overseas. This alert informs creditors to take extra steps before granting credit in your name.
The temporary setup lasts for one year but you can easily remove it when you return from deployment. It’s a free service provided by the three major credit bureaus, Experian, Equifax, and TransUnion.
They share alerts among themselves, so filing with one is enough to safeguard all of them. Fraudulent charges and identity theft are common issues while stationed abroad; thus using this tool will offer increased protection against these risks during this period.
Tell Your Financial Institution You’re Deploying
Inform your financial institution about your deployment to ensure that they are aware of your situation and can provide appropriate support and guidance. By notifying them, you can take advantage of any special benefits or services that may be available to military personnel during their deployment.
This includes potential fee waivers, reduced interest rates on loans, or other accommodations that can help alleviate financial stress while you are away serving our country. It’s important to keep communication lines open with your financial institution so that they can assist you in managing your accounts and finances effectively during this time.
Avoid Foreign Transaction Fees
To help military families manage their finances during deployment, it is important to avoid foreign transaction fees. These fees can quickly add up and eat into your hard-earned money.
By using a credit card that has no foreign transaction fees or by exchanging currency before traveling, you can save valuable dollars that could be better used for other expenses. It’s crucial to research different banking options and credit cards to find the ones that offer the best deals for international transactions.
Remember, every dollar counts when it comes to maintaining financial stability during deployment.
Manage Your Bill & Loan Repayments
To effectively manage your bill and loan repayments during deployment, it is important to have a plan in place. Start by setting up automatic payments for your bills and loans so that they are taken care of on time without any hassle.
This will help you avoid late fees or missing payments while you are away serving your country. Additionally, make sure to notify your financial institutions about your deployment so that they can provide you with any necessary support or options for managing your finances.
By staying organized and proactive in managing your bills and loans, you can maintain financial stability even while deployed.
Utilize the Servicemembers Civil Relief Act
The Servicemembers Civil Relief Act (SCRA) is a valuable resource that military families can utilize to manage their finances during deployment. Under the SCRA, service members are eligible for certain financial protections and benefits.
For example, it allows you to lower your interest rates on pre-existing loans and credit card debt to 6 percent while you are on active duty. This can help reduce your monthly payments and save money in the long run.
Additionally, the SCRA provides protection against eviction from rental properties if the rent is $3,851 or less per month (adjusted annually). It also gives you the ability to terminate residential leases without penalty when deploying or receiving orders for a permanent change of station.
Seek Free Credit Monitoring
Protecting your credit is crucial, especially during deployment. As a military family, you can seek free credit monitoring services to safeguard your financial well-being. By utilizing these services, you can stay informed about any changes or potential threats to your credit profile.
This includes receiving alerts about new accounts opened in your name or suspicious activity on existing accounts. Free credit monitoring gives you peace of mind knowing that someone is watching out for any signs of identity theft or fraud.
Take advantage of this resource and take proactive steps to protect your financial security while serving our country.
Take Advantage of Available Housing Resources
Military families can benefit greatly from utilizing available housing resources during deployment. One option is to consider living in military housing, which provides a safe and supportive environment specifically designed for military families.
This can help alleviate some financial burden as the cost of housing may be lower compared to renting or buying a home off-base. Additionally, military spouses who are experiencing financial difficulties due to deployment may be eligible for assistance through programs like the Military Housing Assistance Fund (MHAF) or the Department of Defense’s Homeowners Assistance Program (HAP).
By taking advantage of these resources, military families can find stability and peace of mind when it comes to their housing needs during deployment.
Learn About Low-Cost Investment Opportunities
Take the time to educate yourself about low-cost investment opportunities. Understanding how to invest your money wisely can help you grow your finances while minimizing risk. Look for investments with low fees and expenses, such as index funds or exchange-traded funds (ETFs).
These types of investments offer diversification and can provide steady long-term growth. By learning about these low-cost options, you can make informed decisions that will benefit your financial future.
Remember, it’s never too early or too late to start investing and working towards your financial goals.
Earn Interest in a High-Interest Savings Account
You can maximize your savings during deployment by earning interest in a high-interest savings account. This type of account offers a higher interest rate than traditional savings accounts, allowing you to grow your money faster.
By taking advantage of this opportunity, you can make the most of your hard-earned income and achieve your financial goals more quickly. It’s important to research different banks or financial institutions to find the best high-interest savings account that suits your needs.
With the power of compound interest on your side, even small deposits can add up over time and provide greater financial security for you and your family.
Financial Planning Before Deployment
Before deployment, it is crucial for military families to understand their income and how it will change, develop a comprehensive financial plan, save extra money, know the protections offered under the Servicemembers Civil Relief Act (SCRA), and seek financial help if needed.
Understand Income and How It Will Change
Understanding your income and how it will change during deployment is crucial for effective financial planning. Take the time to review your military pay and allowances, as well as any additional benefits you may be eligible for.
This will give you a clear picture of what to expect financially while you are deployed. Keep in mind that some expenses may decrease during this time, such as housing costs, but there may also be new expenses to consider, like communication fees or increased childcare costs.
By understanding these changes upfront, you can create a realistic budget and make informed decisions about saving and spending during deployment.
Develop a Financial Plan
Developing a financial plan before deployment is crucial for military families to maintain stability during this challenging time. Start by understanding your income and how it will change while you’re away.
Take the time to create a budget that includes both essential expenses and savings goals. Consider automating bill payments to ensure they are taken care of while you’re deployed. Additionally, familiarize yourself with the protections offered under the Servicemembers Civil Relief Act (SCRA) so that you can make full use of them if needed.
Seek help from financial professionals who specialize in assisting military families if necessary. By taking these steps, you’ll be better prepared to navigate the financial challenges that may arise during deployment and protect your family’s financial well-being.
Save Extra Money
One important aspect of financial planning before deployment is saving extra money. Deployments can bring unexpected expenses, and having a cushion of savings can provide peace of mind.
By setting aside a little bit each month leading up to deployment, military families can build an emergency fund or save for specific goals. This extra money can be used to cover any unforeseen expenses that may arise during the deployment period.
It’s always a good idea to plan ahead and save as much as possible to ensure financial stability during this time.
Know Protections Under the SCRA
The Servicemembers Civil Relief Act (SCRA) provides important protections for military families during deployment. Under the SCRA, service members are entitled to certain legal and financial benefits designed to alleviate some of the stress that can come with serving overseas.
These protections include reduced interest rates on existing loans, protection against eviction from rental properties, and relief from certain civil lawsuits. It’s important for military families to familiarize themselves with the provisions of the SCRA and understand how it can help them maintain financial stability while their loved ones are deployed.
Seek Financial Help if Needed
If you find yourself struggling financially during deployment, it’s important to know that help is available. Military families can seek financial assistance if needed. There are numerous resources and support systems in place to provide guidance and aid during difficult times.
Whether it’s through military-specific programs, nonprofit organizations, or financial counseling services, reaching out for help can make a significant difference in your financial well-being.
Remember that seeking assistance is not a sign of weakness but rather a proactive step towards managing your finances effectively and ensuring the stability of your family during deployment.
Conclusion
In conclusion, managing finances during deployment can be challenging for military families. However, by taking proactive steps such as setting up active duty alerts on credit accounts and utilizing resources like the Servicemembers Civil Relief Act (SCRA), families can better navigate this period of financial uncertainty.
It is important to plan ahead, budget wisely, and seek assistance when needed to ensure stability and security during deployment.
FAQs
1. What types of financial planning should military families consider during deployment?
Financial planning for military families during deployment could include automating bills, applying available benefits, budgeting for household finances under a pay change and considering investment strategies.
2. How can I manage my finances while being deployed?
Managing finances while deployed involves consistently monitoring your budget, using resources for financial assistance and preparing your finances before deployment.
3. Are there special entitlements and benefits for deployments?
Yes, there are special entitlements and pay during deployment which provide extra support alongside other benefits and resources for military families dealing with possible financial challenges faced over this period.
4. What tips do you have to stay financially fit during deployment?
Staying financially fit during deployment requires proper budgeting advice including saving and investing provisions as part of the overall Deployment finance management strategy specifically designed by keeping in mind the needs of military families.
5. Does getting deployed affect personal finance management?
Military deployments indeed influence personal finance management due to pay changes that may impact household budgets but structured Financial Strategies like utilizing available resources to cope with such shifts can considerably reduce the resulting stress.
Source URLs
https://www.investopedia.com/12-financial-tips-for-military-families-5194431
https://science.howstuffworks.com/10-financial-tips-for-deployment.htm
