Military Financial Counseling

A social enterprise, the NFEC is dedicated to serving this country’s veterans and active-duty servicemembers. The NFEC created its American Dream Movement specifically to provide complimentary resources to select organizations working with those who serve – and have served – our country. The goal of the movement is to offer servicemembers access to counseling, education, and military personal financial materials that will help them make solid financial decisions that move them closer to their life goals.

Demonstrating its dedication to promoting military financial literacy, the U.S. Government recently mandated financial counseling and education to be provided to all armed forces personnel. Law USC 992, which went into effect in July 2016, requires the Department of Defense to provide comprehensive financial training and personal financial counseling services to all members of the U.S. military.

The mandates are carried out by the Office of Financial Readiness, which makes Personal Financial Counselors/Managers available to armed forces members through recently-established Family Centers. The OFR also provides the financial training at each indicated touchpoint.

Military financial training must be offered at significant time points in each servicemember’s duty, including: training at initial entry; arrival at first duty station; at each transfer of duty station; during leadership training; when the servicemember invests in the Thrift Savings Plan; and upon promotion, pre- or post-deployment. Training also occurs at each significant life event during the member’s service, including key milestones such as: marriage, divorce, birth of first child, or disabling sickness/condition.

The requirement for military financial counseling and financial literacy training covers a wide range of subjects. The law states that the following topics must be offered as part of the education/counseling:

According to the recent USC 992 legislative mandates, military financial counseling services must be made available – upon request – to all military servicemembers and their spouses. The law also provides that the financial counselors must be well-prepared and qualified through training, education, or experience to offer effective, valuable counseling services specifically to armed forces members. Counselors must be free from any conflicts of interest; and exhibit dedication to providing helpful counseling and information about financial services, and related marketing practices, to members of the armed forces and their spouses.

There are multiple reasons why military financial counseling and education are so important. Research shows that military personnel experience even greater financial challenges than civilians. In two 2016 surveys conducted by Zebit and USAA/Blue Star Families, more than 60% of military personnel report being stressed about their finances. As stated by USAA and Blue Star Families, “Financial readiness is critical to mission readiness because financial stress can distract service members, distress family members and harm retention.” Evidence also suggests that most active-duty servicemembers (88%) believe financial readiness training should be personalized to each specific family’s needs.