Homelessness and Money Mismanagement in Iraq and Afghanistan Veterans

Abstract

Objectives We examined the empirical link between money mismanagement and subsequent homelessness among veterans. Methods We used a random sample of Afghanistan/Iraq era veterans from the National Post-Deployment Adjustment Survey in 2009–2011. Results Veterans were randomly selected from a roster of all U.S. military service members in Operation Iraqi Freedom or Operation Enduring Freedom who were separated from active duty or in the Reserves/National Guard. Veterans (n = 1090) from 50 states and all military branches completed 2 waves of data collection 1 year apart (79% retention rate). Thirty percent reported money mismanagement (e.g., bouncing or forging a check, going over one’s credit limit, falling victim to a money scam in the past year). Multivariate analysis revealed money mismanagement (odds ratio [OR] = 4.09, 95% CI = 1.87, 8.94) was associated with homelessness in the next year, as were arrest history (OR = 2.65, 95% CI = 1.33, 5.29), mental health diagnosis (OR = 2.59, 95% CI = 1.26, 5.33), and income (OR = 0.30, 95% CI = 0.13, 0.71). Conclusions Money mismanagement, reported by a substantial number of veterans, was related to a higher rate of subsequent homelessness. The findings have implications for policymakers and clinicians, suggesting that financial education programs offered by the US Departments of Defense and Veterans Affairs may be targeted to effectively address veteran homelessness.

VA Disability Compensation and Money Spent on Substance Use Among Homeless Veterans: A Controversial Association

“…VA disability compensation has been found to be protective against homelessness (12), but high rates of substance use disorders have been found among homeless veterans (13), suggesting that homeless veterans who receive VA disability compensation may use it to support addictive habits resulting in their homelessness. Many homeless veterans also have problems managing their money, and money mismanagement has been identified as a potential target for intervention in this population (14).…”

All-data approach to assessing financial capability in people with psychiatric disabilities.

“…In one study of psychiatric inpatients at four VA hospitals, clinicians indicated that 27 patients (11% of the sample) were in need of a payee (Marc I. Rosen et al, 2002). Other studies, not focused specifically on payee assignment, have described frequent difficulty managing their funds among people with mental health conditions (Elbogen, Sullivan, Wolfe, Wagner, & Beckham, 2013; Marson et al, 2006). …”

Factors Associated with Money Mismanagement Among Adults with Severe Mental Illness and Substance Abuse

“…Because people with SMI are often poor, with no financial cushion, the consequences of money mismanagement can be severe, and include increased probability of homelessness (Conrad et al 1998; Elbogen et al 2013), depression (Weiser et al 2006), higher psychiatric symptom severity (Conrad et al 2006b), more missed medical appointments (Weiser et al 2006), reduced overall functioning (Black et al 2008; Conrad et al 2006b), and family conflict (Angell et al 2007; Elbogen et al 2007). Despite the importance of money mismanagement in people with SMI, little is known about characteristics of people most prone to mismanage their funds.…”