Lessons From a Veteran to Today’s Soldiers

November 11, 2014

If someone were to ask me what I am the most proud of, next to my husband and daughter, I would say that I am the most proud of serving in the military. The military is where I developed a strong work ethic. I also learned to think of others before myself and I learned to lead even though I may not have had all of the answers. I enjoyed every crazy moment in the military (well, if I am honest, the port-a-potties were not fun, yuck!) and I grew close to many of the servicemen.

Twenty years later, I am proud to call some of the soldiers I served with my dearest friends. Many of my friends went on to have wonderful careers both in the military and as civilians but others left the military early and struggled as a civilian. Some left on their own; others were forced out of the military.

If I had to name the number one thing that differentiated the people who were successful from the ones that struggled, I would say it was how they managed money in the military, particularly debt. During my military career, I worked in security and human resources and I was nothing short of shocked at how many careers and unfortunately, lives ended because of badly managed finances. What made me angry were the predatory lenders that I felt preyed on soldiers.

I understand that ultimately people make their own choices but keep in mind, when I was in the military at the age of 22, soldiers called me mom. I was the oldest of all of my female friends. I think sometimes people forgot how young people are when they joined the military.

Think back to your late teens and early 20s. How knowledgeable were you about money management or debt? How would you have reacted if everywhere you turned people were offering you credit cards, car loans, payday loans, and every other financial vehicle that can tie soldiers to an insane interest rate?

You combine the impulses of people barely out of their teens with easy credit, a steady paycheck and a lack of money management skill and you have a mixture that only leads to broken hearts and dreams. Worse yet, the decisions some of the soldiers make in their teens and twenties impact their future. Bad money decisions can lead to reprimands from senior leadership, garnishment of wages (commercial lenders can garnish up to 25% of a solder’s paycheck), lost careers or even future careers, lost security clearance and some lost the will to live.

Outside of just about every military base I had ever visited were payday loan companies, title pawn shops, rent-to-own stores and questionable car dealerships- ready to take a young soldiers’ future from them. I, like most soldiers, had no money management skills when I joined the army and I quickly found myself in debt. Lucky for me, I had only gotten into a little debt (under $1500) and I was fortunate to work with a colleague with excellent money management skills.

Under his tutelage, I was able to quickly pay off the debt and I was able to save a good portion of what I made. Because I was not burdened by debt, I was able to make the choice to leave active duty, join the reserves, finish college and ultimately fulfill my dream of helping people manage their finances. If I had not had the intervention from my colleague, I probably would had continued to accumulate debt, I would not have been financially able to leave the military and if I had gotten into enough debt, I would have to had to declare bankruptcy – ending both my military career (I had a position that required a security clearance) and my dreams (it is virtually impossible to find a position as a financial advisor with a bankruptcy record.)

I am grateful that the military is beginning to acknowledge that there is a serious problem. They have started mandating financial education classes for soldiers. I do believe that the programs need to go further, with a focus on true financial wellness.

Financial wellness is a state of well-being that encompasses all facets of financial planning with a focus on behavioral changes. It goes beyond simply telling people what to do and guides them by showing them what to do. Ultimately, financial wellness is about empowering individuals to take control of their financial lives and goals.

So many of the wonderful financial professionals that work with servicemen complain about not having enough time or even the ability to offer true planning to those in need. We all understand that for years, servicemen have been victims of predatory financial professionals and the military is simply protecting soldiers, but many see a need for deeper planning specifically by financial professionals. Not only talking to soldiers about debt, but specifically counseling them on their individual situations and offering unbiased guidance and the tools to free themselves of debt.

If I could talk to new soldiers, I would tell them that the future is theirs for the making or destroying. I would tell them that debt for many is leveraging their futures on circumstances and events for which they have no control over. I would tell them that every financial decision they make is mapping a future for them- it is their choice where that future leads. I would help them to understand that budgeting is simply directing money ultimately in the direction of their dreams- a cheaper car payment may free up the cash to save for a home or a college savings plan. I would tell them that a financial plan is a process of making sure that all areas of their financial life are working in harmony with their deepest values, hopes, and dreams. Mostly, I would want to give those that sacrifice their lives for our freedom, the freedom from feeling burdened and lost in a sea of debt- to give them hope for the future.