The United States is home to roughly 15.8 million veterans — that’s 6.1% of the total population.
Military service can open doors to stable pay, healthcare, education, subsidized childcare, and pensions. However, frequent relocations, limited spousal employment, and combat-related trauma can strain finances, especially within the first years.
In 2015, the Consumer Financial Protection Bureau (CFPB) released a research brief based on a nationwide survey of adults in which a sizeable number of respondents identified as veterans. The CFPB’s goal in conducting the survey was to go beyond traditional measures — socioeconomic status, income, and wealth — to measure financial wellbeing more deeply. Notably, the survey found veterans reported higher financial wellbeing than their civilian counterparts.
FINANCIAL WELLBEING OF VETERANS COMPARED TO NON-VETERANS
FOR 55,000 | DATA AS OF 04.30.2019
SOURCE: CONSUMER FINANCIAL PROTECTION BUREAU
Strategic Insights
CFPB’s Financial Wellbeing Scale
0-40: Severe financial insecurity.
41-50: Moderate financial struggles.
51-60: Generally stable finances.
60+: Mostly secure.
70+: Nearly universal security.
- The average financial wellbeing score for veterans was 61; for nonveterans it was 54.
- Scores ranged widely suggesting a substantial variation in how veterans felt. Their financial wellbeing appeared to be most strongly associated with education and age followed by physical health and homeownership.
- Financial wellbeing scores were higher for veterans in their 50s and 60s compared to their younger adult counterparts.
- The study suggests the strong positive associations to financial wellbeing are in areas that veterans can acquire through education and practice. This is good news for promoters of financial wellness programs.
- The study does not answer whether veterans’ higher financial wellbeing scores were related to military service or other demographic, attitudinal, and situational characteristics. Further research is needed.
This is good news for credit unions. The industry can support its veteran members by promoting financial literacy, offering flexible online and in-person support, and training staff about current resources available for veterans, such as VA loans, tax benefits, the GI Bill, and more.