Armed Forces Bank Military Family Financial Readiness Report is
released during May, Military Appreciation Month. Armed Forces Bank
meets unique needs of military families with products like no-fee
checking accounts.
LEAVENWORTH, Kan., May 22, 2024
/PRNewswire-PRWeb/ -- New research from Armed Forces Bank – a
full-service military bank committed to serving those who serve
since 1907 – examines the unique financial challenges, attitudes
and well-being of military families. In its Military Family
Financial Readiness Report, released as the nation celebrates
Military Appreciation Month, Armed Forces Bank shares comprehensive
survey data gleaned from people connected to military life.
Military families face distinctive
financial concerns due to the nature of their service, including
frequent relocations, deployment and fluctuating income.
Understanding how they feel about financial readiness is crucial
for providing tailored support and services.
"Military families face distinctive financial concerns due to
the nature of their service, including frequent relocations,
deployment and fluctuating income. Understanding how they feel
about financial readiness is crucial for providing tailored support
and services," said Armed Forces Bank SVP and Regional Military
Executive Tom McLean.
This Military Family Financial Readiness white paper examines
benefits and challenges of current financial products, the
importance of homeownership, post-military service financial
confidence levels, preferred resources for financial insight, the
impact of military experience on financial habits, and factors that
contribute to or hinder financial literacy and security. Following
are highlights from the report:
Importance of Home Ownership for Military Families
Home ownership holds significant importance for military families
with 51% responding that homeownership is "very important"
mirroring a broader sentiment in the
United States. Surveys consistently show that homeownership
is perceived as a crucial aspect of the American Dream,
highlighting its symbolic and financial significance.
A study conducted by the National Association of Realtors in
2021 found nine out of 10 Americans believe that owning a home is a
good financial decision, a stat that underscores the positive
perception of homeownership's financial benefits. Despite this
significance and the home ownership benefits offered by the
Veterans Benefits Administration (VBA), only six percent of the
more than 21 million veterans and service members in the U.S. today
have used their VBA benefit.
"It's hard for military families to decide to buy or rent
because they move so frequently," said Melanie Aguto, senior loan officer at Armed
Forces Bank & Top 50 Scotsman Guide VA Lender. "My role as a
loan officer and military spouse is to provide education and
support to help clients make informed choices."
Most and Least Used Banking Products by Military Families
According to the survey, the most commonly used banking products
among military families are checking (79%) and savings (72%)
accounts, as well as credit cards (69%). They less frequently
leverage retirement accounts (36%), insurance products (35%) and
investment services (30%), indicating potential areas for
improvement and wealth-building strategies.
Aspects of Banking Services Most Important to Military
Families
When it comes to banking services, low fees were most important to
respondents (59%). Armed Forces Bank responded with a no-fee Access
Freedom Checking account, which offers:
- No monthly service charge
- No minimum balance
- Military Early Pay (access to direct-deposited funds from the
Department of Defense one business day before actual pay date)
- Access to 38,000+ ATMs
- Free overdraft protection (when linked to a savings
account)
"We're proud to offer current and former military members
financial products and services that cater to the military
lifestyle," said McLean. "Our financial products are easy to
understand and provide financial freedom to access and move money
seamlessly. In addition, Armed Forces Bank offers peace of mind
that your checking account has no monthly service charge and no
minimum balance requirement."
Impact of Military Experience on Financial Habits
While most respondents (41.05%) view their military experience
positively, citing benefits such as discipline and preparation,
less than a quarter (17%) of respondents are not confident
regarding financial readiness post-military service, with concerns
ranging from job security to lack of financial education to
understanding of the GI bill and other military-specific
services.
Assistance Needed to Best Prepare for Financial Future
Financial education emerges as the most sought-after resource for
preparing for the future. Addressing the challenges faced and
providing targeted resources can significantly improve the
financial well-being of military members and their eventual
transition to civilian life.
Armed Forces Bank commissioned the Military Family Financial
Readiness survey online in April
2024. All of the 200+ respondents were connected to active
military life, a condition for participation in the survey. The
survey participants included veterans (26%), retired military
members (24%) and active-duty service men and women (17%).
To gain additional insights from the Armed Forces Bank's
Military Family Financial Readiness Report, visit
afbank.com/financialreadiness
About Armed Forces Bank
Armed Forces Bank, founded and headquartered in Fort Leavenworth, Kansas, is a full-service
military bank committed to serving those who serve since 1907.
Armed Forces Bank provides affordable, personal and convenient
banking and financial services to both active and retired military,
as well as civilian clients in all 50 states and around the world.
Approximately 75% of Armed Forces Bank associates have some type of
military affiliation either by spouse, retired themselves or their
children.
Armed Forces Bank has $1.3 billion
in assets and is a wholly owned subsidiary of Dickinson Financial
Corporation, a $3.9 billion bank
holding company headquartered in Kansas
City, Missouri. Armed Forces Bank's sister bank, Academy
Bank, is a full-service community bank with over 70 branch
locations in Arizona, Colorado, Kansas and Missouri. For more information, visit
http://www.afbank.com and follow us on LinkedIn, Facebook and
Instagram. Member FDIC.
Media Contact
Elaina Boudreau, BELA
Communications, (913) 660-0548, eboudreau@belapr.com
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SOURCE BELA Communications