Military households more likely to suffer financial challenges, study reveals

Military households more likely to suffer financial challenges, study reveals
NFCC report shows requirement for financial advice is strong.
MAY 09, 2024

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."

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management