The First Command Financial Behaviors Index® reveals that nine out of ten middle-class military families have budgeted for relocation costs during the 2019 PCS season
FORT WORTH, Texas – Career military families who are relocating to a new duty station this summer have put their financial houses in order for the move.
The First Command Financial Behaviors Index® reveals that 89 percent of middle-class military families (commissioned officers and NCOs in pay grades E-5 and above with household incomes of at least $50,000) who will be making a Permanent Change of Station (or PCS) this summer have budgeted for the costs of their relocation. Half of these families say they expect out-of-pocket costs of at least $500, and 16 percent expect to spend at least $2,000.
The Index reveals that 36 percent of survey respondents expect to have a PCS move this summer. More than half said they had a PCS within the past two years. Peak season for PCS moves runs from May through August.
“PCS season is a normal part of the lives of our Nation’s military families, and service members and spouses have learned that responsible budgeting is critical to managing the costs of these frequent moves,” said Scott Spiker, chairman and chief executive officer of First Command Financial Services, Inc. “Nine out of ten relocating families say they feel extremely or very financially confident about their preparations.”
Service member families are eligible for a number of valuable PCS benefits, including:
- Advance Basic Pay — an interest-free loan of up to three months of basic pay.
- Advance Basic Allowance for Housing (BAH) — an advance on monthly pay for off-base rental housing.
- Dislocation Allowance (DLA) — helps pay for moving expenses.
- Monetary Allowance in Lieu of Transportation (MALT) — pays for mileage when driving to a new station.
- Per Diem Allowance — helps pay for meals and lodging while traveling.
- Temporary Lodging Allowance (TLA) — helps pay for meals and lodging when temporary housing is required.
First Command coaches service members to take full advantage of these benefits so they can keep out-of-pocket expenses to a minimum.
“The key to effective budgeting for a PCS move is knowing what is and is not covered,” said First Command President and Chief Operating Officer Mark Steffe. “Many of our Financial Advisors come from the ranks of veterans and military spouses. So they understand the importance of budgeting for unexpected costs that are not covered by their government benefits. Our deep experience and understanding of military life has prepared us to coach our clients through PCS moves and other financial challenges.”
About the First Command Financial Behaviors Index®
Compiled by Sentient Decision Science, Inc., the First Command Financial Behaviors Index® assesses trends among the American public’s financial behaviors, attitudes and intentions through a monthly survey of approximately 530 U.S. consumers aged 25 to 70 with annual household incomes of at least $50,000. Results are reported quarterly. The margin of error is +/- 4.3 percent with a 95 percent level of confidence. https://www.firstcommand.com/financial-behaviors-index/