First Command reports: military families put their finances in order for summer moves
FORT WORTH, Texas – (BUSINESS WIRE) – Career military families planning to move to a new duty station this summer are putting their finances in order, according to the First Command Financial Behaviors Index®.
The results of the fourth annual PCS survey reveal that 93% of middle-class military families (officers and non-commissioned officers in pay grade E-5 and above with a household income of at least $ 50,000) who plan to make a permanent change of position (PCS). this summer, have budgeted for the costs of their move. Forty percent of these families say they expect personal expenses of at least $ 500, and 20 percent expect to spend at least $ 2,000. The expected average cost is $ 972.
“The PCS season is a regular part of the life of our nation’s military families, and service members and spouses have learned that realistic budgeting is essential to managing the costs of these frequent moves,” said the Chief Executive Officer. first command, Mark Steffe. “Nine in ten families who move say they feel extremely or very confident financially in their preparations.”
Optimism is also strong among military spouses who will seek work in their new location. Three in four say they feel extremely or very confident about their employment possibilities.
The index reveals that 60% of survey respondents expect the PCS to move this summer. This is a 10 point increase from last year when fewer families expected to move due to the coronavirus pandemic. About two-thirds of respondents say they have completed a PCS in the past two years. The peak season for PCS removals runs from May to August.
Families of service members are eligible for a number of valuable PCS benefits, including:
Advance the base salary. This is an interest-free loan that covers up to three months of base salary.
Advance Basic Allowance for Housing (BAH), which is an advance on the monthly salary for non-basic rental housing.
Dislocation indemnity (DLA). It helps pay for moving expenses.
Monetary allowance in lieu of transport (MALT). Service members are paid for mileage when traveling to a new station.
Daily allowance, which helps pay for meals and accommodation while traveling.
Temporary accommodation allowance (TLA) for OCONUS or temporary accommodation costs (TLE) for CONUS. This allowance pays for meals and accommodation when temporary accommodation is required.
Personalized moving. Also known as Do-It-Yourself (DITY) move, this program provides 100% of what the government would pay a contracted moving company. It was put in place during the pandemic and is now permanent.
Move-in housing allowance (MIHA) for OCONUS. This allowance reimburses service members for overseas costs associated with private or rented accommodation.
Advance Overseas Housing Allowance (OHA) for outside the United States. This is an advance over any projected OHA to cover the difference between the cost of non-base rental accommodation and the BAH.
The First Command trains service members to take full advantage of these benefits so that they can minimize their personal expenses.
“The key to effective budgeting for a PCS move is knowing what is covered and what is not,” Steffe said. “Four in five of our financial advisors come from the ranks of veterans and military spouses. They have first-hand experience of the challenges of budgeting for unforeseen costs that are not covered by their government benefits. A deep experience and understanding of military life has prepared us to accompany our clients through PCS movements and other financial challenges. ”
About the First Command Financial Behaviors Index®
Compiled by Sentient Decision Science, Inc., the First Command Financial Behaviors Index® assesses trends in financial behaviors, attitudes and intentions of the American public through a monthly survey of approximately 530 American consumers between the ages of 25 and 70 with an annual household income of at least $ 50,000. The results are published quarterly. The margin of error is +/- 4.3% with a confidence level of 95%. For more details on our research, please send an email [email protected]. http://www.firstcommand.com/fbi/
About Sentient Decision Science, Inc.
Sentient Decision Science has been commissioned by First Command to compile the Financial Behavior Index®. SDS is a behavioral science and consumer psychology consulting firm with particular vertical expertise in the financial services industry. SDS specializes in advanced research methods and statistical analysis of behavioral and attitudinal data.
About the first order
First Command Financial Services and its subsidiaries, including First Command Brokerage Services and First Command Bank, support our nation’s military families in their quest for financial security. Since 1958, First Command Financial Advisors have shaped positive financial behaviors through face-to-face coaching with hundreds of thousands of client families.
© 2021 First Command Financial Services, Inc. is the parent company of First Command Brokerage Services, Inc. (member SIPC, FINRA), First Command Advisory Services, Inc., First Command Insurance Services, Inc. and First Command Bank. Securities products and brokerage services are provided by First Command Brokerage Services, Inc., a brokerage firm. Financial planning and investment advisory services are provided by First Command Advisory Services, Inc., an investment advisor. Insurance products and services are provided by First Command Insurance Services, Inc. Banking products and services are provided by First Command Bank (member FDIC). Securities are not FDIC insured, have no bank guarantees, and may lose value. A financial plan alone cannot guarantee that retirement or other financial goals will be met. First Command Financial Services, Inc. and its related entities are not affiliated with, licensed to sell or represent on behalf of or otherwise endorsed by any federal employee benefit programs referenced by the US government or the US military.