Economic Conditions of Military Families

Abstract

For military children and their families, the economic news is mostly good. After a period of steady pay increases, James Hosek and Shelley MacDermid Wadsworth write, service members typically earn more than civilians with a comparable level of education. Moreover, they receive many other benefits that civilians often do not, including housing allowances, subsidized child care, tuition assistance, and top-of-the-line comprehensive health care. Of course, service members tend to work longer hours than civilians do, and they are exposed to hazards that civilians rarely, if ever, face. The extra pay they receive when they are deployed to combat zones helps their families cope financially but cannot alleviate the stress. Though service members are relatively well paid, the military lifestyle takes a toll on the earnings of their spouses. Chiefly because the military requires service members to move frequently, spouses' careers are regularly interrupted, and employers are hesitant to offer them jobs that require a large investment in training or a long learning curve. More military spouses than comparable civilian spouses are either unemployed or work fewer hours than they would like, and military spouses overall tend to earn less than their civilian counterparts. Despite the military's relatively high pay, some service members and their families--particularly among the junior enlisted ranks--report financial distress, and a handful even qualify for food stamps. Moreover, precisely because military pay tends to be higher than civilian pay, families may see a drop in income when a service member leaves the armed forces. Finally, the pay increases of recent years have slowed, and force cutbacks are coming; both of these factors will alter the financial picture for service members, possibly for the worse.

Today's Soldier: Assessing the Needs of Soldiers and Their Families

“…U.S. military pay and benefits have been gradually increasing in the 21st century; personnel are relatively well paid compared with civilians who have similar levels of education (Hosek and Wadsworth, 2013). Yet someparticularly junior enlisted personnel-report financial distress, and 5,000 qualified for food stamps in 2012 (Hosek and Wadsworth, 2013).…”

“…U.S. military pay and benefits have been gradually increasing in the 21st century; personnel are relatively well paid compared with civilians who have similar levels of education (Hosek and Wadsworth, 2013). Yet someparticularly junior enlisted personnel-report financial distress, and 5,000 qualified for food stamps in 2012 (Hosek and Wadsworth, 2013). Between 2002 and 2010, the proportion of service members reporting serious financial problems ("tough to make ends meet" or "in over their heads") or one or more problems paying bills declined, but the junior enlisted personnel most likely to report such problems were those in the Army (DoD, 2012).…”

“…For example, one study found that self-reported well-being was lower among soldiers with higher credit card debts and lower perceptions of net worth (Bell et al, 2014). Problems with spouse employment (captured in the Work/ Life Balance domain) can also lead to family financial challenges (Miller et al, 2011a;Blue Star Families, 2014), although those may be offset by the relatively higher pay that military personnel earn compared with their civilian counterparts (Hosek and Wadsworth, 2013). …”

Accumulation of Risk and Promotive Factors Among Young Children in US Military Families

“…Cozza et al (2013) argue that existing studies of military children focus too much on stresses or deficits, and too little on their strengths, the strengths of their families, or the supports around them. For example, due to military accession standards, every military child has at least one parent with at least a high school education or the equivalent, employment, health insurance, competitive financial benefits, and a wide variety of support and educational programs (Hosek & MacDermid Wadsworth, 2013). Thus, military children may be protected from significant risks encountered by children in the general population, such as living in poverty, having an unemployed parent or lacking access to health care.…”

Strengthening Prior Service--Civil Life Gains and Continuum of Service Accessions into the Army's Reserve Components

“…RC members may live in communities distinct from that of their units, but they will still need to live within reasonable travel proximity of their units (Clever and Segal, 2013;and Johnson, 2009, p. 21). Additionally, RC members (and potential RC members) may make location decisions based on access to health care facilities; in particular, RC members may be at a disadvantage in enjoying the benefits of military-provided health care depending on whether they live in a rural or urban environment (Hosek and Wadsworth, 2013;Clauss, 2012;Clever, 2013, p. 31) 5 and depending on the state they reside in (Hosek and Wadsworth, 2013, p. 43). Tax policies differ by state; although we discovered no literature on this, tax policies could also affect veterans' location decisions.…”