At a time when many servicemembers are feeling anxious about sequestration and possible cuts to retirement and other benefits, financial knowledge is boosting their feelings of confidence and security.
Results of a financial literacy test and survey jointly commissioned by First Command Financial Services, Inc., and First Command Educational Foundation reveal that test takers in middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000) who earn a perfect score on the nine-question quiz are more likely than those with low scores to feel:
- Confident in their ability to retire comfortably (61 percent versus 42 percent)
- Financially secure month to month (61 percent versus 39 percent of lower scorers)
- Confident that their financial situation will improve in the next year (52 percent versus 44 percent)
“We see in the results of this concise test that financial knowledge can be a powerful rejoinder to the current anxiety and uncertainty that is afflicting our men and women in uniform and their families,” said Scott Spiker, CEO of First Command. “Sequestration and defense downsizing are creating a host of new financial concerns, with four out of five military families expecting to be financially affected by anticipated cuts to defense spending. The boost in confidence and security that comes with greater financial literacy is a strong argument in favor of delivering meaningful financial education to America’s career military.”