As a servicemember or Veteran, you’ve experienced the unique challenges that come with military life. From frequent relocations to unexpected deployments and inconsistent income streams, these are often the tip of the iceberg. These challenges are intensified when a servicemember has loved ones to care for.
Caring for a child, spouse, elderly parent, or dependent with special needs adds a layer of financial responsibility that can make life more difficult if you’re a military servicemember. Thankfully, there are quite a few measures you can take that can provide some relief.
AAFMAA Wealth Management & Trust LLC (AWM&T) offers some financial strategies for military families who must care for loved ones.
The U.S. military offers a few programs that can help families get through difficult financial times. Many are administered by TRICARE, a healthcare program for active-duty members and Veterans.
TRICARE provides several programs for servicemembers and their families facing certain situations, including autism, cancer, and childbirth. They also assist with items such as travel and computer expenses.
TRICARE also offers the Extended Care Health Option (ECHO), a program that specifically caters to those with special needs. It covers beneficiaries with serious physical, psychological, or intellectual disabilities. To qualify, servicemembers must enroll in the Exceptional Family Member Program (EFMP).
Specific military branches also offer benefits programs that can help with the financial needs of military families. These organizations include Army Emergency Relief, Air Force Aid Society, and Navy-Marine Corps Relief Society. These organizations offer grants and emergency funds for servicemembers with caregiving responsibilities.
As families juggle military careers with everyday caregiving tasks and responsibilities, setting a reasonable and flexible budget is a crucial task that can promote stability.
If you’re in a military family with caregiving obligations, it’s wise to build a budget that prioritizes essential expenses like medical supplies, equipment, home renovations, and other needs. This is especially important if you have fluctuating income sources.
Creating an emergency fund is a strategy recommended to people from all walks of life, but it’s an especially good idea for military personnel. Most financial authorities recommend setting aside enough money to cover three to six months of living expenses.
Tracking expenses is a key component of budgetkeeping. This is easy to do with online tools like Mint, You Need A Budget (YNAB), or Military OneSource’s Financial Management program. Take special care to separate caregiving costs from other household expenses.
Military servicemembers with caregiving needs can also take advantage of tax credits and deductions related to their situation. Families with a child younger than 13 or a spouse who cannot care for themselves independently may qualify for the Dependent Care Credit from the IRS.
Some expenses related to caregiving—especially those not covered by TRICARE—may be written off as tax deductions. These may include transportation to medical appointments and special equipment related to their needs. Active-duty servicemembers may also qualify for tax relief, especially if they are deployed for action.
Especially when it comes to tax-related issues, it’s important to retain all receipts and medical records that may be necessary to back up your financial situation.
When mapping out financial strategies for military families, consider looking for alternative support resources. These include the Fisher House Foundation’s scholarships for children in military families, Operation Homefront grants, and the National Military Family Association programs.
You may also find assistance programs catering to military families through your local or state government. These can be found through Military OneSource, your base’s Family Support Center, or your State VA office.
No matter what your family’s special needs are, you have plenty of options for financial strategies for military families that can support you and your loved ones through difficult times.
AWM&T exclusively serves military families just like yours. We’re here to deliver the wealth management solutions and the specialized financial advice you need and deserve. To get in touch, call 1-910-307-3500 or click here to speak to a professional. Learn more about us and your options on our website.
AWM&T was created in 2012 to meet the financial needs of military families. We provide experienced, trustworthy, long-range financial planning, investment management, and trust administration services to support financial independence and security. We aim to be the premier provider of fiduciary services by always working for AAFMAA Members’ best interests.
We are proud to share the mission, vision, and values of AAFMAA, our parent company, consistently building on AAFMAA’s rich history and tradition to provide Members with a source of compassion, trust, and protection. Through AAFMAA’s long-standing legacy and our financial expertise, AWM&T is honored to provide personalized wealth management services to military families across generations.