Military households more likely to suffer financial challenges, study reveals

America’s military personnel and their families are often on parade, but their unique financial challenges are less visible.

New research for Military Appreciation Month from the National Foundation for Credit Counseling reveals that active duty military personnel and their loved ones are more likely than most Americans to struggle with their finances such as high credit card usage or dipping into their savings for everyday living expenses.

Behavior such as missing credit card payments or switching debt between cards is more prevalent among the military community than civilians and these are indicative of financial stress. They are also more likely to use potentially risky nonbank financial services and investments such as payday loans and cryptocurrencies.

The behavior identified in the research is at odds with the survey respondents’ belief in their financial literacy. Military personnel and veterans are more likely to give their knowledge an A or B rating than the wider population.

However, around four in ten military personnel and their spouses said that they would benefit from professional financial advice to address everyday financial questions.

The research was conducted by Harris Poll and supported by the Wells Fargo Foundation.

“The insights gained from this research underscore the critical need for financial education and personalized support and services that may look different than what may exist the general population,” said Bonnie Wallace, head of Financial Health Philanthropy at Wells Fargo. “By fine-tuning our efforts in response to these findings, we’re honored to be continuing these efforts to serve those who have served.”

Meanwhile, a recent study co-conducted by Voya with Easterseals, a disability and community service provider, shines a sobering spotlight on a critical support gap that disabled veterans experience in the workplace.