Supporting Military Spouses: Financial Planning During Deployment

During deployment, you may feel uncertainty and stress. Financial planning can help you and your deployed spouse feel more at ease. Before deployment, take time to have an open and honest discussion about your family’s finances. To reduce any money worries, consider the strategies below.

Budgeting Strategies for Deployment 

Managing finances during your spouse’s deployment presents  specific challenges and opportunities. By proactively addressing budgeting, savings, and debt management, you can maintain financial stability and even enhance your financial well-being.

Before leaving for your deployment, be sure you and your partner agree on your family’s financial priorities.

Your first step should be to establish a budget. This budget should account for any changes in income, such as deployment-related allowances, and anticipate potential increases in household expenses. 

Set a Monthly Budget

Begin by reviewing all sources of your household income, including any additional allowances your deployed servicemember may receive, such as the Family Separation Allowance or Combat Zone Tax Exclusion. Next, list all monthly expenses, distinguishing between fixed costs that don’t change from month to month and variable costs that do. This will help you identify areas where your spending can be adjusted to align with your current financial situation. 

Allocate Funds for Savings and Emergencies

It’s crucial to have emergency funds available during your spouse’s deployment. Before they leave, aim to set aside a portion of the monthly budget for unexpected expenses, such as home repairs or medical emergencies. Even small, consistent contributions over time can build robust savings. Additionally, consider using any extra income from deployment allowances to bolster your emergency savings. Every little bit helps.

Manage Debt During Deployment

Addressing existing debts during deployment requires its own planning. Start by prioritizing high-interest debts. If possible, consider consolidating or refinancing options to secure lower interest rates. You should also make time to review and adjust any automatic payments you’ve set up to see if they still align with the current budget. You may want to meet with a financial counselor who can provide personalized strategies for effective debt management.

Maintain Financial Communication During Deployment

Open communication is essential when discussing finances before deployment. Being honest and transparent about finances will help both partners understand each other's expectations and responsibilities and help you manage household expenses, set realistic budgets, and make informed financial decisions. 

Create a Deployment Financial Checklist 

Using a comprehensive financial checklist before deployment will put you both on the same page regarding financial responsibilities. Key components of this checklist include:

• Recurring expenses: List all regular bills, such as utilities, mortgage or rent, insurance premiums, and subscriptions, along with their due dates and amounts. This will help you set up automatic payments while your servicemember is away. 
• Payment due dates: Document the due dates for all upcoming bills to prevent missed payments, which can lead to late fees or service interruptions. Digital calendars or reminder apps can help you track these dates.
• Important financial documents: Make sure you both have access to essential documents using a resource such as AAFMAA’s Digital Vault. Use it to store your bank account information, credit card details, and investment records. Consider setting up a secure shared digital folder or using a password manager to store and share this information safely.

Choose the Right Communication Tools 

The appropriate digital tools can help you with financial discussions before and during deployment. Here are some to consider:

• You Need A Budget (YNAB): YNAB allows couples to share budgets and track expenses in real-time so that both partners are aligned on financial goals.
• Honeydue: Designed specifically for couples, Honeydue enables users to connect bank accounts, loans, and investment accounts for optimized joint financial management.
• OurRelationship: OurRelationship is an online, evidence-based tool that offers flexible options for couples to work on their relationship, including financial communication.
• Plan My Deployment: This military-based service provides resources and support for military families, including financial planning tools and counseling services.

Additional Financial Tips for Deployment 

As you prepare your family for your spouse’s deployment, keep in mind these helpful tips:

• Use financial resources designed for military families: Take advantage of free financial tools and services designed for military personnel and their families.  Additionally, the government provides valuable information about their programs and more on Military OneSource. 
• Leverage deployment benefits and discounts: Explore benefits such as the Savings Deposit Program (SDP), which allows deployed servicemembers to invest up to $10,000 with a guaranteed 10% annual interest, compounded quarterly. Also, look for discounts and protections available under the Servicemembers Civil Relief Act (SCRA), which may include reduced interest rates on certain debts incurred before service. 

Avoid Common Financial Mistakes

The time during your spouse’s deployment can be challenging enough without financial stress. Try to avoid these two common financial mistakes so you don’t have one more thing to worry about.

• Overspending: There will always be temptations to overspend, even during deployments. But doing so could lead to unnecessary expenses and potential debt you’ll have to repay. Stick to the budget you and your spouse worked so hard to create.
• Neglecting Savings Goals: Don’t stop contributing to retirement savings or emergency funds. Prioritize regular contributions to your savings and investment accounts.
• Failing to Utilize Military Benefits: Servicemembers and their families have a variety of military benefits available to them to help improve their financial situation.

AAFMAA Is Here to Help 

Start ensuring your financial future today by exploring life insurance options that meet your current needs.. Contact an AAFMAA Member Benefits Representative at 800-522-5221 or email [email protected] to discover all that AAFMAA Membership has to offer you during deployments and throughout your military life and beyond. Before you deploy, be sure your family is adequately protected. SGLI is not enough for most military families. Get a quote for affordable coverage to close the gap and apply today completely online, quick and easy.