Financial readiness a concern for military families

Armed Forces Bank, a full-service military bank based in Leavenworth, Kan., gathered insight via a recent survey on how financial institutions can best serve military families. The Military Family Financial Readiness white paper — released during the nation's celebration of Military Appreciation Month — examines the financial challenges, attitudes and well-being of military families.."Military families face distinctive financial concerns due to the nature of their service, including frequent relocations, deployment and fluctuating income. Understanding how they feel about financial readiness is crucial for providing tailored support and services," said Armed Forces Bank senior vice president and regional military executive Tom McLean..Following are highlights from the report: .Importance of home ownership.51 percent of military families responded that homeownership is "very important." Despite this significance and homeownership benefits offered by the Veterans Benefits Administration, only 6 percent of the 21 million veterans and service members in the United States have used their VBA benefit.."It's hard for military families to decide to buy or rent because they move so frequently," said Melanie Aguto, senior loan officer at Armed Forces Bank..Most and least used banking products.The most commonly used banking products among military families are checking (79 percent) and savings accounts (72 percent), as well as credit cards (69 percent). Fewer leverage retirement accounts (36 percent), insurance products (35 percent) and investment services (30 percent)..Most important aspects of banking services.When it comes to banking services, 59 percent stated that low fees were most important. Also valued were products that allow early access to wages and no-fee access to ATMs..Impact of military experience on financial habits.While 41.05 percent of respondents viewed their military experience positively, citing benefits such as discipline and preparation, 17 percent were not confident regarding financial readiness post-military service. Listed concerns ranged from job security to lack of financial education to understanding of the GI bill and other military-specific services..Assistance needed to best prepare for financial future.Financial education emerges as the most sought-after resource for preparing for the future. Addressing the challenges faced and providing targeted resources can significantly improve the financial well-being of military members and their eventual transition to civilian life. .AFB's survey included veterans (26 percent), retired military members (24 percent) and active-duty service men and women (17 percent).