FORT WORTH, Texas--(BUSINESS WIRE)--Career military families who are relocating to a new duty station this summer have put their financial houses in order for the move.
The First Command Financial Behaviors Index® reveals that 89 percent of middle-class military families (commissioned officers and 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 relocation. Half of these families say they expect out-of-pocket costs of at least $500, and 16 percent expect to spend at least $2,000.
The Index reveals that 36 percent of survey respondents expect to have a PCS move this summer. More than half said they had a PCS within the past two years. Peak season for PCS moves runs from May through August.
“PCS season is a normal part of the lives of our Nation’s military families, and service members and spouses have learned that responsible budgeting is critical to managing the costs of these frequent moves,” said Scott Spiker, chairman and chief executive officer of First Command Financial Services, Inc. “Nine out of ten relocating families say they feel extremely or very financially confident about their preparations.”
Service member families are eligible for a number of valuable PCS benefits, including:
- Advance Basic Pay — an interest-free loan of up to three months of basic pay.
- Advance Basic Allowance for 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 Allowance (TLA) — helps pay for meals and lodging when temporary housing is required.
First Command coaches service members to take full advantage of these benefits so they can keep out-of-pocket expenses to a minimum.
“The key to effective budgeting for a PCS move is knowing what is and is not covered,” said First Command President and Chief Operating Officer Mark Steffe. “Many of our Financial Advisors come from the ranks of veterans and military spouses. So they understand the importance of budgeting for unexpected costs that are not covered by their government benefits. Our deep experience and understanding of military life has prepared us to coach our clients through PCS moves 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 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 Financial Planning and First Command Bank, coach our Nation’s military families in their pursuit of financial security. Since 1958, First Command Financial Advisors have been shaping positive financial behaviors through face-to-face coaching with hundreds of thousands of client families.
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.