I hear a lot of feedback that the military doesn't do enough to teach service members about personal finance. I'm always kind of baffled by this. The Department of Defense has so many resources for service members and families, from the advice and resources provided by the Office of Financial Readiness, to installation-level financial counselors, to the professionals at Military OneSource.
In addition to the general availability of information and resources, a schedule dictates when certain financial readiness training is supposed to happen. This schedule refers to career and life transitions as "touchpoints."
Taking full advantage of financial touchpoint training can be one of the smartest moves service members make to build a financially secure future. But for many, completing the training becomes a "check in the block," and they miss out on the opportunity to make real progress.
What is financial touchpoint training?
By federal law, service members are supposed to receive specialized financial education at 12 touchpoints:
- First duty station
- Permanent changes of station
- Promotion
- Vesting in the Thrift Savings Plan
- Entitlement to continuation pay
- Marriage
- Welcoming first child
- Preparing for divorce
- Disabling sickness or condition
- Leadership training
- Pre-deployment preparation
- Post-deployment
These touchpoints are meant to help military families build financial stability, prepare for significant life events and ensure long-term financial security. Every branch implements financial touchpoint training a little differently, and not everyone gets the full benefit of the entire touchpoint curriculum. But even if it's not required by your branch or command, you can use these touchpoints as a reminder of the resources available to you.
Whether you're just starting your career or nearing retirement, here are five reasons why making the most of financial touchpoint training will improve your financial future.
1. It's Military Specific
Financial touchpoint training isn't just generic personal finance advice -- it's tailored specifically to the needs of service members and military families. Your civilian friends don't need to figure out PCS moves and the government match to Thrift Savings Plan contributions for Blended Retirement System members. The training covers all these military-specific topics, ensuring that service members understand their benefits and can use them to their advantage.
By engaging fully with touchpoint training, service members can learn how to maximize their military pay and benefits and adjust as their situation changes.
2. It's the Right Information at the Right Time
Military life is filled with transitions, and each one brings different financial challenges. For example, a new service member just starting basic training may not have considered how to create a budget, save for emergencies or plan for long-term financial goals such as homeownership or retirement. Similarly, those preparing to transition out of the military must navigate different financial questions, such as how to use their benefits wisely, budget on civilian pay and manage health-care expenses.
Touchpoint training offers valuable education and support when service members need it most. It encourages them to plan ahead, helping to establish sound financial practices before they face life's most expensive and often stressful decisions.
3. It Improves Quality of Life
Financial problems can have a serious impact on both personal well-being and mission readiness. Service members who are stressed about money may be distracted, unable to focus fully on their duties and more likely to experience personal and family problems. In extreme cases, financial concerns can even lead to security clearance issues, which can jeopardize a service member's career.
By getting smarter with financial touchpoints, service members can prevent many of the problems that come from financial insecurity. Learning to budget, save and invest wisely can provide peace of mind and allow service members to focus on their work and their families. This improved quality of life leads to better performance, both on the job and at home.
4. It Builds Financial Resilience
Financial resilience means you are prepared for the unexpected. And goodness knows, military life can be unpredictable! PCS moves, deployments, child-care challenges and spousal unemployment can all create financial stress.
Financial touchpoint training should help build financial resilience, including having emergency funds and paying down debt. But being financially resilient means more than just having money in the bank. It means having plans in place for unexpected events. That might include having renter's insurance, buying a car that you can afford even if you PCS or making the right decision between renting or buying a home.
5. It Smooths the Transition to Civilian Life
One of the most significant transitions service members will face is the move from military to civilian life. This transition comes with many financial challenges, from understanding how military benefits translate into civilian terms to figuring out health-care, employment and retirement planning. Financial touchpoint training includes guidance on how to navigate these changes, helping service members make a smooth transition without financial hardship.
Military service comes with unique financial opportunities and challenges. Financial touchpoint training is designed to help service members navigate these successfully. Whether you're just starting your military career, looking ahead to the next duty station or transitioning to civilian life, this training provides critical financial education and resources tailored to your needs. By taking full advantage of the touchpoint program, you can build financial resilience, secure your future and improve your quality of life, both now and in the years to come.
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