Financial Planning for Military Families: Beyond BAH Basics

Comprehensive financial planning helps military families maximize unique benefits and prepare for transitions. While housing allowances are major components, true financial security comes from understanding the full spectrum of military benefits.

The 5-Pillar Military Financial Plan

1. Housing Strategy

Consider:

• Rent vs buy analysis (use our calculator)
• VA loan benefits (0% down payment)
• Property tax exemptions for disabled veterans

2. Education Planning

Maximize:

• GI Bill transfer options to spouse or children
• MyCAA scholarships for spouses (up to $4,000)
• State tuition assistance programs

3. Career Continuity

Prepare for:

• Spouse employment challenges during PCS moves
• Licensing reciprocity between states
• Remote work opportunities

Unique Military Benefits

Servicemembers Civil Relief Act (SCRA)

Key protections include:

• 6% interest rate cap on pre-service debts
• Lease termination rights without penalty for PCS/Deployment
• Protection from default judgments in civil cases

Thrift Savings Plan (TSP)

Maximize your retirement savings:

• 5% matching for Blended Retirement System participants
• Low-cost investment options
• Tax advantages (Traditional vs Roth TSP)

Transition Planning

Start 24 months before separation:

1. Complete TAP workshops early
2. Build your civilian network on LinkedIn
3. Convert military experience to civilian resume terms