Many Soldiers who play a key role in our nation’s defense are challenged with various financial stressors in their daily lives. This is not a new issue among service members. According to an article in the NCO Journal, a 2019 survey by the Military Family Advisory Network revealed that 92.5% of service members and their Families identified financial stress as a major concern that hindered their focus on military responsibilities.
More recently, the 2024 Military Family Lifestyle Survey conducted by Blue Star Families revealed that financial stress remains a major concern for service members. Fifty percent identified military pay as their top stressor, followed by housing concerns at 44%, time away from Family at 39%, spouse employment at 34%, lack of control over their military career at 32% and access to health care systems at 27%.
Military pay has remained the leading concern for active-duty Family respondents over the past five years. The 2024 MFLS substantiated that finding, with 58% of enlisted respondents expressing that pay is a top issue, compared with 30% of officer Family respondents.
Financial stress is a constant among service members but varies within the ranks. In the article “Money Isn’t Everything, But It’s Definitely an Enlisted Issue,” Sgt. Maj. Noel DeJesus and Spc. D’Angelo Isaac said senior enlisted personnel often notice how financial problems affect discipline, morale and retention in their units. They also explained that junior enlisted Soldiers may face these challenges directly, which can lead to anxiety, stress, sleeplessness, depression and other issues.
“Military Families tend to have a higher prevalence of missed credit card payments than the civilian population and are more likely to fall prey to risky non-bank financial services such as payday loans, according to the National Foundation for Credit Counseling,” DeJesus and Isaac wrote.
Dr. Cindy Morita, Acting Family Advocacy Program Manager/Financial Readiness Program Manager, Directorate of Prevention, Resilience and Readiness, recognizes the effects of financial stress on Soldiers. It doesn't just impact their Families; it undermines their focus, performance, and ultimately their mission readiness, a sentiment confirmed by DeJesus and Isaac in their article.
Simply put, when Soldiers are distracted by financial problems, they may not perform at their best in challenging situations.
In fiscal year 2025, the Servicemember Quality of Life Improvement and National Defense Authorization Act authorized a 14.5% pay raise for junior enlisted service members and a 4.5% pay increase for all other service members.
“This additional compensation for entry-level Soldiers will help close the pay gap, as their current earnings barely exceed the annual salaries of minimum-wage workers in some U.S. states,” DeJesus and Isaac wrote in their article.
In addition to Soldiers’ pay, the Army provides additional compensation, such as the Basic Allowance for Housing. The rising cost of housing continues to be a stressor, with only 37% of Families finding housing within their BAH, down from 58% in 2020.
“Married Soldiers or those with dependents receive the BAH, but recent trends indicate that the allowance for housing is not enough to keep up with the rapid increase in cost-of-living expenses, such as rent and utilities,” DeJesus and Isaac said in the NCO journal.
“The Basic Allowance for Subsistence is meant to offset the cost of food for service members,” Morita said.
Again, the rising cost of living indicates that the BAS rates are also not enough to keep up with food expenses.
“While intended solely for the service member, many report using the BAS to feed their Families, shedding light on the challenges households face when relying on a single military income,” DeJesus and Isaac wrote.
In their article, DeJesus and Isaac also said that in instances where the BAS is reduced or taken, it puts extra pressure on Soldiers and their Families.
This added strain can result in them having trouble accessing enough food, especially among junior enlisted members.
Financial stress has been noted during relocations, affecting 70% of Families that report out-of-pocket expenses exceeding $500. This is compounded for Families because the strain of relocation can take them 12 months or more to financially recover from.
The 2024 MFLS Survey reported that additional stressors come into play when spouses face unemployment, especially when job searches stretch beyond three months. For 25% of spouses it takes nine months or longer.
Financial differences were evident across ranks: 82% of officer Family respondents indicated they were doing OK or living comfortably, compared with only 46% of other enlisted Family respondents.
Personal financial readiness training is congressionally mandated under Section 992 of Title 10, United States Code, to provide Soldiers and their Families with high-quality financial education and counseling throughout their military careers.
The Army has several resources available to help Soldiers cope with their finances. The Financial Readiness Program is available to provide comprehensive education and no-cost, unbiased counseling services to help Soldiers and Families secure their financial well-being, which enhances military readiness.
Soldiers and Family members are encouraged to take advantage of the education and advice to help guide them through key life moments. The knowledge and skills acquired through the
FRP empower Soldiers and Families to manage their financial affairs and enhance mission readiness. FRP support for Soldiers includes Financial Frontline— an online resource hub featuring checklists, handouts, videos and other tools to help Soldiers and Families make informed financial decisions. Army Community Service has in-person FRP tools, training, counseling and education on a wide variety of topics. Additional resources include the DPRR website and the DOD Office of Financial Readiness website. These resources can provide support to reduce the financial burden for Soldiers and their Families
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