Military Financial Behavior

I'm not a fan of blogging. It seems to end up as "blitching" about a gripe or needless cheerleading. It frequently masquerades as journalism which is probably why my more gullible relatives now believe quite a few blatant and incendiary conspiracy theories found floating around posing as legitimate prose. But it's a requirement, so here goes...

A child does what feels good. An adult makes a plan and executes it. I borrowed this maxim from a popular author, but I think it is a powerful metric of a very taboo topic in the military: financial behavior.

I have never received or sought financial advice from a supervisor in the military. Aside from the occasional overheard discussion, finance is an uncommon topic among military coworkers. On the one hand, this make sense. Culturally, finances are taboo. We like to create the image that we make, have and use lots of money, but we don't like to talk about the numbers or methods behind the image. The soaring foreclosure, bankruptcy and other credit default rates in America are a pretty clear indication that the math behind the image adds up to a negative number for too many people. Are some of those people in your unit?

According to one study, money-related strife causes over half of American divorces. It's commonly accepted that half of all marriages end in divorce. Rates in the military are similar, but we don't talk about it. We have regular suicide prevention and PTSD briefings. We're told to watch our battle buddy for signs that he might be depressed. Have you ever been told to watch him for signs that he might be living beyond his means?

Sex is a taboo topic in most cultures. In America, we have grown more comfortable discussing it but it is not hard to find a school district struggling with some parents who still don't want their children to receive sex education. In general however, condoms, birth control and avoiding unwanted pregnancy or disease are mainstream topics in America. In general, Americans have figured out that unwanted pregnancy and sexually transmitted diseases will not go away without education and dialogue. If you knew a soldier in your unit was with a different partner every weekend, would you ask him how he/she prevents disease or pregnancy? Why not? How is this different from self-destructive financial behavior? Does it have less effect on good order and discipline?

After financially "doing dumb with zeros on the end", I have a new definition of the word 'afford'. 'Afford' means I can pay for it with cash from a planned segment of my family's budget. If I want say, a 2009 basic Chevy Tahoe, that'll be about $36K. Add chrome wheels and tires? A conservative extra $2K. Base pay for an 18 year E-6 is just shy of $45K. An O-3 with 6 years: ~$61K. An O-6 with 18 years: ~$104K. Six year payments on that Tahoe at 10%: $700/mo or $8400/yr. Why the math? Have you seen a member or your unit driving a vehicle that in payments alone costs over 25% of his pay? If he/she needs a flashy car, how nice is the house? Toys? Emergency savings? Retirement savings? College savings? Where is he going in that truck, besides trouble?

How is “affording” possible on a military salary? The same as on any other salary – by living within one’s means. As that popular author would say, “Live like no one else now… so that later you can LIVE like no on else.” Don’t be that child that pulls out the plastic to buy things just because they’re pretty or shiny or everyone else seems to have one. Be the adult that tells his/her money where to go, when to go there, how to go there and what to get done. You do this with the tactical actions of your unit? Why not your money? Healthy financial behavior is characterized by lifelong habits of making sound plan for one’s money (not credit), executing it, evaluating it and adapting it.

The bottom line is that financial behavior of many military members, especially younger members, needs attention. Too many of us act like children with our money and it’s a recipe for retiring in disaster instead of dignity. Crushing debt leads to debilitating stress and declining soldier fitness across all domains. If you would intervene in your soldiers’ lives when drug, sex, alcohol or other destructive behaviors manifest, why not help them with their finances?

Brian Oneill
MAJ, USAF
CGSCSG 19A