First Command Reports: Military Families Fall Short on Annual Money Quiz

FORT WORTH – Despite the wealth of information and education available today, financial readiness remains an elusive goal for many career military families, according to the First Command Financial Behaviors Index®.

Results of the 14th annual financial readiness test and survey commissioned by First Command Financial Services, Inc. reveal that just 29% 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) earned a passing score on the nine-question quiz, which is designed to measure basic money knowledge associated with financial readiness.

This is the strongest result achieved by military test takers in five years, but it still trails that of the broader U.S. population. The Index reveals 35% of civilians with similar household incomes earned a passing score. The long-term trend shows military test takers scoring less than the general population in 12 of the past 14 years.

Notably, financial training isn’t delivering a significant impact on scores. Among military families who have completed a financial education program, 33% earned passing scores – a modest 3% bump. In contrast, 29% of civilian test takers who completed a financial education program earned a passing score. That’s 9% less than those who didn’t take a training course.

“Many Americans are challenged by a lack of financial knowledge, but military families are particularly vulnerable due to their lifestyle,” said First Command President/CEO Mark Steffe. “They face unique financial challenges related to permanent changes of station, military spouse underemployment and other elements of military life. Financial readiness issues cut to the heart of many important life decisions, including education, divorce, safety and mental health.”

First Command promotes a variety of resources to address financial readiness concerns, including:

• Financial coaching. Through a trusted coaching relationship, military families can bridge the gap in financial knowledge by learning to leverage positive and productive financial habits, avoid missteps and become financially disciplined and confident.
• Complimentary financial plans. By waiving financial planning fees for active-duty military, First Command coaches clients to commit to and pursue a strategy that focuses on goals and priorities and addresses unique need.
• Concrete actions and solutions. First Command coaches military families in the use of financial solutions from trusted and well-known financial companies that meet strict standards of performance, align with company values and address unique needs.

The value of a coaching-centric approach is supported by First Command’s research results. Career military families who work with a financial coach outperform their DIY colleagues in several key measures of financial readiness. The Index reveals that 79% of military respondents who work with a financial advisor are extremely or very confident their financial situation will improve in the next year. That compares to 39% of those without an advisor. And 77% of military respondents are extremely or very confident in their ability to retire comfortably versus 31% for those without an advisor.

“Education is important, but we believe professional coaching is where the financial services industry can bring the greatest value,” Steffe said. “Financial coaches help service members make the most of their military pay and benefits. They keep them focused on developing and sticking with good behaviors that address all of their financial needs. Coaching helps military families bridge the gap in their own financial knowledge so they feel more confident in their pursuit of long-term financial security.”

About First Command

First Command Financial Services and its subsidiaries, including First Command Brokerage Services 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.