This post will be a little different. As a tribute to military veterans, we’ve asked my parents to give insight on their military experiences and how it affected their relationship with money. You’ll learn a thing or two about me (Tiffany), and probably a little bit about yourself, too. Enjoy.
About My Parents
My mother and father both joined the Army after graduating high school. They met while stationed in Fort Hood, Texas and have been married for 34 years. My mother was honorably discharged as a Sergeant after six years of service. I often joke that she got out of the military after I was born because I was too much to handle. My father continued and retired as a Master Sergeant after 27 years of service. They have one son (firstborn), three daughters (of which I’m the eldest), and one grandson.
How was your relationship with money before joining the military?
Both of my parents grew up in low-income households facing financial hardships. They knew very little, if anything, about how to handle money. My mom said, “As a result, I never want to owe anyone anything especially if it [feels] like charity”. Furthermore, she knew so little about finances that, while accepted to a military academy, Fisk University, and Oberlin College, she declined these options because she didn’t know how to go about financing her education.
My father didn’t understand how to make a solid plan for long-term benefit. His mother took care of him and his six other siblings and didn’t have money for him to buy the things he really wanted: school clothes, entertainment, and other junk items that he now coins “foolish desire”.
What did you learn about money from the military?
My parents agree that there are many perks to serving in the military such as housing, food allowances, and good pay. My father learned to work hard for his pay, but also that misconduct could result in a demotion in rank or reduction in pay. He believes that “the military is a great place for a young person to start building a solid nest egg of money if they would sacrifice and start saving at least 25 percent…of their pay early in their career for an addition to a retirement plan.”
My mother learned that, while the military at that time offered many benefits, there was a lack of classes and sessions to help young soldiers navigate their new life. She describes her time as a young adult in the military with newfound money as both “exciting and dangerous.” “At the time in Ft. Hood, TX pawn shops, quick loan institutions, and car dealerships were everywhere preying on the young soldier that knew nothing about money management. Televisions and jewelry were purchased on payday only to be pawned afterward so one could make it to the next paycheck” said my mom.
At the age of 19, she ended up buying a yellow Ford Pinto for about $1,500 with a high-interest rate. She admits, “I didn’t think to bring someone with me that had experience buying cars.” However, one great financial decision she applauds was participating in the Veterans Educational Assistance Program (VEAP) while in the military, which yielded her $20,100 to fully pay for her undergraduate studies after leaving the military.
How was your relationship with money after the military?
Once my father retired, my parents had less access to military installations such as the commissary (grocery store) and BX/PX (department store), where items are affordably priced. My father was shocked when met with the reality that he had to make ends meet for his family with just 50% of his usual steady monthly paycheck. “I’d like to think we could have saved more but we were also raising four (Army Brat) children”, said my mom. Overall, they lived a very comfortable life despite only living on base twice.
She further explained that “It helped that my husband and I were always on one accord about paying our bills on time and not rushing off to buy the latest piece of technology, or a new car every 4 years or so.” Today, they are more liberal with their money and only buy what they truly need or want if it’s affordable. They are also committed to saving, investing and giving to others.
How or what can civilians (non-military) learn about money from your experiences in the military?
My father says that civilians should “take advantage of the great benefits that are offered for those who choose to serve this country” while learning a job skill or professional trade that can earn them a living, especially if they are unable to go to college. Money-wise, my mother doesn’t see a huge distinction between civilian and military life as it relates to money management because “making poor choices with money has the same result whether you’re military or civilian.”
What advice can you give new service members (especially those leaving their parents’ or guardians’ home for the first time) about managing their money?
My mother recommends taking advantage of the many free and discounted resources available at your military installation such as the Morale, Welfare and Recreation (MWR) office and the Commissary. She also encourages new service members to find resources at their assigned military installations that provide financial education or to identify a trusted financial counselor in the area.
If you’re seeking a college degree, look into the military’s available educational benefits while on active duty and after discharge. She adds, “if those benefits require you to contribute a certain amount from your paycheck in order to receive the benefits, stick to that amount because you’ll receive so much more. Additionally, while you’re on active duty, look into whether the military provides full reimbursement for classes you take while on active duty.”
My mother advises being intentional about paying off debt and setting aside money for saving and giving from each paycheck. She emphasizes that “giving to others provides an intangible benefit – do it”. My father encourages new service members to sacrifice now and limit carefree spending. “Identify and evaluate your current needs versus your immediate unnecessary wants…”, he says. This goes in line with saving and investing to ensure you are ready for retirement.
Overall, my parents’ military experiences helped them get control of their money so it didn’t control them. As a married military couple with four children, they learned financial discipline, sacrifice and how to live within their means. This meant keeping up with the Joneses was out of the question. As a result, they’ve lived a comfortable life despite their initial lack of money, financial education, and guidance.
4 Key Takeaways
- It’s never too late to take control of your money
- Learn and take advantage of your service benefits (commissary, discounts, money management, tuition reimbursement). This applies to civilians, too. Think about the benefits offered through your employer and memberships.
- Live below your means. Save, save, save, so you’re better positioned to win in civilian life once discharged. For example, buying a house with cash, investing in the stock market, etc.
- Be honest with yourself and what you want during and after service. Ask for help if you’re not the greatest with money management.
We offer a complimentary phone consultation to help guide you through your personal financial goals, click here to schedule your call today. Do your military friends and family a favor, tag them or share this story with them. If you have served or currently serve in the U.S. Armed Forces, you will receive a 50% discount on our 2019 launch specials listed on our website.*
We hope you were able to learn something from our parents. We’d love to know – did you learn something about the military or money that you didn’t know before? Leave a comment or tell us about your relationship with money as a veteran.