Handling Money During a Deployment

Six tips to financial success

by Rich Strickler, USAA Deployment Assistance Program Manager

When service members are deployed, their wives are often left to run the household on their own, including paying the bills and balancing the checkbook.  How can you keep track of your family’s finances during this stressful time?

• Understand your family’s finances, including your monthly budget, how much debt you owe and what funds you have for emergencies.  Taking advantage of online banking services and automatic payment plans can help ensure all bills get paid on time.
• Ensure you’re listed as a joint account holder on your spouse’s credit card, banking and investment accounts so you’ll be authorized to make changes to the accounts, if needed, without your spouse’s signature.
• Contact your local JAG office to create or update a durable power of attorney.  It will allow you to manage legal matters, such as refinancing your home.  At the same time, ensure your wills are up-to-date.
• Seek out special deals and take advantage of the Servicemembers Civil Relief Act, which affords active-duty military members exclusive benefits, such as reduced interest rates on credit cards, mortgages and auto loans.
• Research financial institutions and the options they offer.  Some banks offer interest-free mortgage assistance loans to help military families who may experience a financial hardship during a spouse’s absence.  Some insurers offer reduced auto insurance rates for cars that will be stored.
• Save often.  While it might not be a priority while on a stretched budget, time is your biggest asset when it comes to growing your savings.  If your credit card debt is under control, begin saving for an emergency fund in a savings or money market account.  Try to save at least three months of living expenses.  Then, start contributing to a retirement savings plan, such as a Roth IRA or the government’s Thrift Savings Plan (TSP).

With a loved one in harm’s way, it can be hard to stay focused on routine financial matters.  But keeping your money goals on track can help ensure your household is prepared for the future.