While financial uncertainty is always worrisome, it can be even more traumatic for someone accustomed to the structured environment of the armed forces. “When you’re in the military, you’re used to being told what to do,†Jones says. “As a civilian, you’re left to fend for yourself.†She turned to VeteransPlus, a Friendswood, Texas-based nonprofit that provides financial counseling to veterans.
Jones found help by way of a financial adviser who reviewed her budget and showed her where she could make changes. The adviser also taught her how to negotiate with her creditors. For example, she made arrangements to defer a car payment to the end of the term of her $18,000 car loan. Finally, the adviser put Jones in touch with organizations in the community that offered emergency financial assistance to veterans who encountered budget shortfalls.
Those actions helped Jones cobble together enough money until she landed a job at a local mission. Today the 37-year-old works as a social worker and she and her 9-year-old son, Zyan, no longer struggle financially. While she knows she would have eventually found her way, she credits VeteransPlus with helping her establish her new life faster.
Understanding the problem
After 20 years of military service, veterans are eligible for a pension that is a portion of their active duty compensation. For example, someone who served for 20 years would qualify for roughly half their active duty pay. However, unless you have plenty of assets, living on half your income can be difficult, and those who leave the military before 20 years won’t even have that. As a result, many veterans seek employment.
Veterans also face other financial concerns. A survey of military financial capability by the FINRA Investor Education Foundation, the U.S. Department of the Treasury, and the President’s Advisory Council on Financial Literacy found that more than 25% of servicemen and servicewomen have accrued more than $10,000 in credit card debt, and only 50% have an emergency fund.