Adjustment and Personal Finance When US Soldiers Return

Kimberly Watson, Editor in Chief
May 09, 2012 /

It is a great moment when an American who has served their country in the armed forces returns home. During last year, almost 150,000 serving members returned, home from Afghanistan and Iraq. A further number, of about 35,000 came home in the first two months of 2012. Although the sensations for these military personnel at being reunited with their families and friends are relief and joy, they are tempered with the sobering facts of personal finance issues.

Personal finance and U S soldiers is a combination that poses various challenges for re-united families and are influenced by factors, for example, reduced income and additional expenses. They are however, challenges that have been recognized by military hierarchy, to the extent that counseling related to financial situations has been introduced for personnel. This is available to them before, and following deployment in combat.

A crucial aspect regarding personal finance and U S soldiers is the discipline of budgeting. Military personnel serving in designated combat areas, receive extra pay for the time spent in these zones. This can have a significant affect on their income and if it has been relied on, lifestyles will need to change to meet prevailing circumstances.

Pensions are provided for career service members and it is critical that money is saved for retirement in any event. The term of service, for members to qualify for a pension is 20 years. Another option of saving is that while serving in combat zones, soldiers are able to deposit funds in their Thrift Savings Plan accounts, which are fundamentally 401(k) for government employees. Personal finance and U S soldiers become more complicated for those who leave the service when they return from a deployment. Frequently for the young people, it could be the first time they have been forced to find a job, among other crucial financial decisions.

Whether a soldier remains in a military career or leaves, they must beware of targeted schemes, directed against members of the armed forces returning home from deployments. The personal finance and U S soldiers perspective, could relate to payday loans, identity theft and investment schemes, promoted by fraudsters, claiming association with the military.

 

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