Career military families are lagging behind their civilian counterparts in basic money knowledge, reflecting a long-term gap in financial readiness, according to First Command Financial Services.
Results of the eighth annual financial readiness test and survey commissioned by the firm reveal commissioned officers and senior NCOs earned an average grade of 64.
In contrast, general population test takers with similar household incomes earned an average grade of 72.
One-third of military test-takers correctly answered seven or more questions in the nine-question quiz. That compares to roughly half of civilian respondents.
Perfect scores were earned by just three percent of military respondents and nine percent of the general population.
“These test results mark the seventh consecutive year that service member families scored below the general population,” Scott Spiker, chairman and CEO of First Command Financial Services, said in a statement. “This financial readiness gap is particularly notable as military families are significantly more likely than general population families to say they have completed a financial literacy or education program.”
Education programs
The 2019 survey reveals that 40 percent of military test-takers say they have completed a financial literacy or education program.
That compares to 18 percent of general population families.
“Financial advisors are an important source of financial information, but coaching is where they bring the greatest value for military families,” First Command President and Chief Operating Officer Mark Steffe added. “They help service members make the most of their military pay and benefits by keeping them focused on developing and sticking with good behaviors that address all of their family’s financial needs. Coaching helps military families bridge the gap in their own financial knowledge so they feel more confident in their pursuit of long-term financial security.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
