FORT WORTH, Texas--(BUSINESS WIRE)--Many of America’s career military families are packing for a Permanent Change of Station this summer, and the majority of them report feeling financially ready for the household move.
The First Command Financial Behaviors Index® reveals that 86 percent of middle-class military families (commissioned officers and senior NCOs in pay grades E-5 and above with household incomes of at least $50,000) who will be making a Permanent Change of Station (or PCS) this summer have budgeted for the costs of their move. Almost half say they expect out-of-pocket costs of at least $1,000, and one out of six expect to spend more than $2,500.
“Regular relocations are a part of the lives of our men and women in uniform, and our career service member families have learned that planning ahead is critical to keep these frequent moves from negatively impacting their finances,” said Scott Spiker, CEO of First Command Financial Service, Inc. “Perhaps most notably, these pre-emptive budgeting efforts are paying off emotionally. Three out of four relocating families say they feel financially confident about their preparations for this year’s move. This is another example of how proactive financial behaviors can positively impact feelings of financial confidence.”
Approximately one-third of active-duty service members are moved in a given year, according to the Department of Defense. While service member families benefit from a number of PCS entitlements, they can encounter unexpected and unreimbursed expenses. To keep out-of-pocket expenses to a minimum, First Command recommends that service members do their homework before a PCS.
“Take advantage of resources which may be available through the transportation office, finance office and family center at your installation,” Spiker said. “Find out which benefits you’re entitled to and determine how much of your expenses they’ll cover.”
Service members may be entitled to:
- Advance Basic Pay — an interest-free loan of up to three months of basic pay.
- Advance Basic Allowance, Housing (BAH) — an advance on monthly pay for off-base rental housing.
- Dislocation Allowance (DLA) — helps pay for moving expenses.
- Monetary Allowance in Lieu of Transportation (MALT) — pays for mileage when driving to a new station.
- Per Diem Allowance — helps pay for meals and lodging while traveling.
- Temporary Lodging Expense (TLE) — helps pay for meals and lodging when temporary housing is required.
Still, many expenses are not covered by government benefits.
“First Command Financial Advisors often recommend that our active-duty clients make sure to figure in costs for food and household items they’ll need to purchase when they arrive, as well miscellaneous costs like deposits for utilities,” Spiker said. “The better your idea of your expenses, and the better your knowledge of what’s covered, the better you’ll be able to establish a budget for your move.”
The Index reveals that about one in five survey respondents will have a PCS this summer. Roughly half say they’ve had a PCS within the past two years. Peak season for PCS moves runs from mid-May through August.
About the First Command Financial Behaviors Index®
Compiled by Sentient Decision Science, Inc., the First Command Financial Behaviors Index® assesses trends among the American public’s financial behaviors, attitudes and intentions through a monthly survey of approximately 530 U.S. consumers aged 25 to 70 with annual household incomes of at least $50,000. Results are reported quarterly. The margin of error is +/- 4.3 percent with a 95 percent level of confidence. http://www.firstcommand.com/fbi/
About Sentient Decision Science, Inc.
Sentient Decision Science was commissioned by First Command to compile the Financial Behaviors Index®. SDS is a behavioral science and consumer psychology consulting firm with special vertical expertise within the financial services industry. SDS specializes in advanced research methods and statistical analysis of behavioral and attitudinal data.
About First Command
First Command Financial Services and its subsidiaries, including First Command Advisory Services, First Command Bank and First Command Financial Planning, assist American families in their efforts to build wealth, reduce debt and pursue their lifetime financial goals and dreams—focusing on consumer behavior as the first and most powerful determinant of results. Through knowledgeable advice and coaching of the financial behaviors conducive to success, First Command Financial Advisors have built trustworthy, lasting relationships with hundreds of thousands of client families since 1958.
First Command Financial Services, Inc., is the parent of First Command Financial Planning, Inc. (Member SIPC, FINRA), First Command Advisory Services, Inc., First Command Insurance Services, Inc. and First Command Bank. Financial planning services and investment products, including securities, are offered by First Command Financial Planning, Inc. , a broker-dealer. Financial planning and investment advisory services are offered by First Command Advisory Services, Inc., an investment adviser. Insurance products and services are offered by First Command Insurance Services, Inc., in all states except Montana, where as required by law, insurance products and services are offered by First Command Financial Services, Inc. (a separate Montana domestic corporation). Banking products and services are offered by First Command Bank. In certain states, as required by law, First Command Insurance Services, Inc. does business as a separate domestic corporation. Securities products are not FDIC insured, have no bank guarantee and may lose value. A financial plan, by itself, cannot assure that retirement or other financial goals will be met. First Command Financial Services, Inc. and its related entities are not affiliated with, authorized to sell or represent on behalf of or otherwise endorsed by any federal employee benefits programs referenced, by the U.S. government, or the U.S. armed forces.
