Five solutions for military families facing inflation

By Team Mighty

Posted 6 Hours Ago

Reviewed By Tessa Robinson

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U.S. military service members and civilian personnel attend the grand opening ceremony of the new commissary aboard Marine Corps Air Station Iwakuni, Japan, June 21, 2016. Designed to anticipate and meet the needs of shoppers, the new grocery store is approximately 50 percent larger, with 52,710 total square feet and is located between the Kintai Inn and Kawashimo housing area. Sections of the improved facility include fresh produce, meat and frozen departments, an international delicatessen, a bakery and fresh, handmade sushi (U.S Marine Corps Photo by Cpl. Justin A. Fisher/ Released)
U.S. military service members and civilian personnel attend the grand opening ceremony of the new commissary aboard Marine Corps Air Station Iwakuni, Japan, June 21, 2016. Designed to anticipate and meet the needs of shoppers, the new grocery store is approximately 50 percent larger, with 52,710 total square feet and is located between the Kintai Inn and Kawashimo housing area. Sections of the improved facility include fresh produce, meat and frozen departments, an international delicatessen, a bakery and fresh, handmade sushi (U.S Marine Corps Photo by Cpl. Justin A. Fisher/ Released)

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Inflation is affecting families all over the world, but for military families, it introduces a unique set of challenges. With frequent relocations, job market fluctuations for spouses, and the additional pressures of maintaining a household on a fixed income, inflation can feel particularly overwhelming. To address this, military families must adopt strategic approaches to managing their finances, building resilience in the face of rising costs.

Reevaluate and adjust your budget regularly

During inflationary periods, it is essential to review and adjust your household budget frequently. Rising costs of food, fuel, and utilities can significantly impact your finances, but staying on top of these changes can prevent overspending.

Track spending patterns

Use budgeting apps like YNAB (You Need a Budget) or Mint to keep tabs on expenses.

Reduce discretionary spending

Cut back on non-essential purchases, such as entertainment subscriptions or dining out.

Plan for seasonal expenses

PCS moves, holidays, and school supplies all contribute to seasonal spikes in spending. Plan ahead and save for these predictable expenses.

Take advantage of military-specific financial resources

Military families have access to a number of resources to help navigate tough financial situations. Military One Source offers free financial counseling, budgeting assistance, and other support services. Families can schedule sessions with certified financial planners who can assist with inflation-related issues. Shopping at the base commissary can offer significant savings on groceries. The Defense Commissary Agency (DeCA) reports that families can save about 25-30% on grocery costs by using the commissary. Access supplemental military programs. Programs like the Supplemental Nutrition Assistance Program (SNAP) or Women, Infants, and Children (WIC) are available for military families, especially during times of financial hardship.

Explore financial aid programs for housing and utilities

With housing costs increasing dramatically, especially in high-cost areas, families can explore housing assistance programs. Keep an eye on BAH rates and advocate for adjustments if local housing markets spike. Check for annual updates that reflect your area’s cost of living.

Inflation impacts utilities too. Low Income Home Energy Assistance Program (LIHEAP) helps qualifying military families cover the cost of heating and cooling their homes. Relocation and Home Purchase Assistance might also be a resource. If you’re moving to a high-cost area, explore the Military Housing Assistance Fund (MHAF) for grants to help with home purchase costs.

Reduce debt and avoid high-interest loans

Carrying high-interest debt during inflation is particularly dangerous. As prices increase, servicing debt becomes more challenging, leading to missed payments and further financial strain. Some options include:

Many military families benefit from consolidating high-interest credit card debt into a single loan with a lower interest rate. Organizations like Navy Federal Credit Union or USAA offer these services. Additionally, the Military Lending Act (MLA) might be beneficial. This act limits the interest rate on most loans to active-duty service members to 36%. If you’re struggling with payday loans or high-interest credit cards, check whether your loan qualifies under the MLA. 

Plan for emergencies and build an emergency fund

Emergency funds are crucial in mitigating financial stress, especially during inflation. Military families should aim to save three to six months of living expenses, but even small amounts saved consistently can make a big difference over time.

Start small. Begin with a goal of saving $500 to $1,000 and build from there. Set up automatic transfers from your checking account to your savings to ensure regular contributions.

If eligible, military families can also contribute to Thrift Savings Plan (TSP) accounts, allowing them to grow their savings tax-free.

Inflation may be impacting the financial landscape, but with the right strategies and resources, military families can successfully navigate these challenges. By updating your budget regularly, utilizing military-specific programs, reducing debt, and building an emergency fund, you can develop a stronger financial foundation. Don’t hesitate to seek support from the various financial services available to military families and take proactive steps toward financial resilience.