According to a recent survey sponsored by the Navy Federal Credit Union and conducted by Forrester Consulting, military millennials are the most confident, positive, prepared, and educated about their financial situation. Despite this finding, these young adults may also not be on top of their financial game. The survey found that they are most likely within the last year to have missed a credit card payment and sought a payday loan. Additionally, in the last two years they are likely to have missed giving a payment on their mortgage. Better Business Bureau serving San Diego, Orange and Imperial Counties would like to share some tips on how military millennials can (and should) manage their finances.
- Budget: One of the best things military millennials can do is to keep track of their spending. Keeping a budget will help prepare them for any tough times ahead. Credit cards should not be used when times get tough so as to avoid the additional monthly credit card fees.
- Income Protection: While military jobs are pretty secure, income protection insurance can cover you financially should you fall ill or have an accident that prevents you from being able to work.
- Savings: Establishing a rainy-day savings fund is important for everyone, not just millennials in the military. Generally, it’s wise to build up six to 12 months of income in savings for emergencies. Your savings may help sustain you through a job loss or injury. It can also help cover financial challenges from salary freezes, higher costs of living and indirect income deficiencies.
- Managing Finances: According to the survey, military millennials tend to do their own research when it comes to managing their money. They tend to forego seeking the advice of financial professionals and instead opt to make their own financial decisions.
- Life Insurance: Life insurance is crucial for military millennials. A life insurance policy will leave military dependents with financial security; or if you are single, a policy may help pay off any outstanding expenses you have.
BBB wants military millennials to stay financially protected. If you have any questions or concerns, please give us a call at (858) 496-2131 or visit bbb.org. We are more than happy to help.
ABOUT BBB MILITARY LINE:
Since 2004, BBB’s Military Line® has provided free resources to our military communities in the areas of financial literacy and consumer protection through the efforts of local BBBs across the U.S.