First Command Financial Services coaches our Nation’s military families in their pursuit of financial security.
What are the main differences between military families and typical American families?
While military families share common goals with other families—such as saving for retirement, paying for education, and buying homes—their lifestyle introduces unique challenges. Active-duty families often face frequent relocations, known as Permanent Change of Station (PCS), which occurs every two to three years. This disrupts employment opportunities for military spouses, contributing to high unemployment rates (21%) and underemployment, where 33% of spouses take jobs below their qualifications just to provide a second income. Additionally, inflation hits military families particularly hard. Although they have job security during recessions, military pay does not protect them from inflation. Junior enlisted personnel, in particular, struggle with low wages. Financial stability is also essential for maintaining security clearance—without it, service members risk losing their jobs. This creates significant pressure on military families to manage their finances carefully throughout their service.
What steps are First Command taking to support military families financially and professionally?
We make a concerted effort to employ veterans and military spouses—91% of our 600 advisors have military experience. The military connection means our Financial Advisors understand the unique financial pressures faced by military families and can provide targeted support. The company focuses on helping families pursue financial stability while also addressing employment challenges within the military community.
Debt management plays a critical role in these efforts. Many military families struggle with high-interest credit card debt, often between 27-29%. We refinance this debt to lower interest rates around 8-9%, providing families with a clearer path to repayment. With the support of advisors, many families repay these loans within three and a half years, freeing up resources to focus on long-term financial goals.
What are the key financial steps military families can take today to improve their situation?
The first recommendation is to engage a financial coach or advisor who understands the military lifestyle and is ideally a fiduciary. Advisors can help families plan their budgets, prioritize savings, and avoid unnecessary debt accumulation. Many military families are unaware of how much they can save through simple budgeting and planning. Another important step is maximizing contributions to the Thrift Savings Plan (TSP), the military’s equivalent of a 401(k). The government matches contributions up to 5%, but many families miss out on this match by not contributing the full amount. Advisors also guide families in tackling high-interest debt early, ensuring their financial plans are not derailed by heavy credit card payments. Addressing debt upfront allows families to focus on more productive financial strategies and secure their futures.
How does First Command address industry challenges like regulation and cybersecurity?
We emphasize the importance of practical regulation while pushing back against overreach. We advocate for “sensible regulation” and work to avoid penalties imposed through enforcement without clear policy guidelines. We also see artificial intelligence (AI) as a transformative tool but focus on forming partnerships with larger firms to maximize AI’s potential within their operations. Cybersecurity is a top priority for us. We invest heavily in protecting sensitive data. Safeguarding data is not just about compliance but also about maintaining the trust of our clients, which is critical for the organization’s long-term success.
What is First Command’s strategy for the next five years, particularly in supporting military families?
We recently launched a new digital wealth management platform to better serve both veteran and active-duty clients. Over the coming months, we plan to expand its use to younger military families. These platforms will streamline financial management and empower families to pursue their financial goals.
First Command aims to engage more effectively with junior enlisted members, a group traditionally underserved due to structural limitations. By digitizing services and incorporating gamification, we plan to better connect with younger military personnel. This approach will help them build financial readiness and stability early in their careers, reducing the need for debt management later.
Are military families becoming more financially ready, given the growing availability of financial education programs?
Despite efforts to improve financial readiness among service members, military families often lag behind their civilian counterparts. Although 63% of military respondents reported taking a financial literacy course in the past year, their average score on financial literacy quizzes was 59%, compared to 69% among civilians. This discrepancy has been consistent over the last several years. The challenge lies in the military’s competing priorities. Financial education is often not a top focus, especially given global security concerns.
What impact will future economic and political changes have on military families?
Economic volatility leading up to and following elections can impact military families, but long-term financial planning is relatively insulated from political changes. Regardless of who holds office, most significant decisions require Congressional approval, limiting drastic policy shifts. However, inflation remains a critical concern. Even though inflation appears to be slowing, policies from future administrations could lead to its resurgence, making it harder for military families to save and invest effectively. Military families are protected from recession-driven layoffs, but inflation presents ongoing challenges. Rising prices put additional pressure on household budgets, making it harder for families to build long-term financial security. Our focus is on helping military clients mitigate these risks by providing tailored financial advice, encouraging smart investing, and ensuring families are prepared for future uncertainties.
Is First Command developing any new apps to support the financial journeys of military families?
We currently offer a banking app, but plans are underway to enhance it with new features, including potential gamification and a holistic financial coaching experience. We recognize that engaging younger military personnel requires more interactive tools. The app will play a key role in expanding services to junior enlisted members, who have historically been difficult to reach under the existing business model, while also supporting our clients into and beyond their military careers. The goal is to provide financial education and support earlier in these members' careers, reducing the need for debt consolidation later.
What major milestones or announcements can we expect from First Command in the near future?
One significant recent development is the rollout of a new digital wealth management platform which enhances our ability to serve veterans and later-stage clients. We also plan to extend this platform’s capabilities to younger military families. While additional announcements are expected in the coming months, First Command is focusing heavily on expanding its banking operations to better serve military clients. These efforts aim to reach a broader demographic within the military community, ensuring that all members—regardless of rank—can access the financial resources they need for long-term goals.
