Financial Problems

Overview | Definitions | Risk Factors | Why Marines May Not Seek Help
Prevention | Suggested Resources | Guidance | Key Terms

General Information

Overview

Financial challenges can arise from unanticipated emergencies or financial mismanagement. Financial hardships (e.g., difficulty paying bills), usually a result of poor financial literacy, are commonly found in demographic groups such as junior enlisted service members, single parents, newly divorced or separated individuals, service members with dependents having physical problems, newlyweds, and individuals who have recently relocated. Financial strain may cause behavioral changes in an individual and has been linked to depression, which can impact duty performance, mission readiness, and interpersonal relationships. If a Marine is at risk for personal problems, marital problems, or suicide, that risk is exacerbated in times of financial stress.

Many financial challenges can be prevented or addressed by the Personal Financial Management Program (PFMP). Each major installation has a PFMP Specialist assigned within MCCS to guide Marines in the development of sound financial practices. Information and links about the PFMP can be found at www.usmc-mccs.org/finance/index.cfm.

Definitions

Risk Factors

The following demographic groups within the Marine Corps population present the highest risk for financial problems:

• Junior enlisted service members (E-1 to E-4).
• Single parents.
• Newly divorced or separated service members.
• Service member's with a family member with physical or emotional challenges, an exceptional family member (EFM).
• Newlyweds.
• New parents.
• Recently relocated service members.
• Service members recently recalled to active duty from reserve status.
• Service members navigating deployment and reunion challenges.

Each demographic group struggles with unique financial challenges that could result in financial hardship if not addressed in a timely fashion. For example, many junior service members have had little, if any, financial education or training prior to accession onto active duty, which negatively impacts their ability to manage spending and impedes their understanding of credit management. In general, all groups struggle with life changes that may necessitate changes to their personal or family earning and spending habits.  These life changes, if not handled correctly, can lead to financial problems, which may impact other areas of the service member's life.

Why Marines May Not Seek Help

• Highly personal and closely guarded aspect of personal life.

• Fear of impact on career.

• Stigma attached to seeking help.

• Embarrassment of not being able to handle their own finances.

• Lack of knowledge concerning type of help available.

• Lack of knowledge about helping agencies available.

Personal financial matters are a closely guarded aspect of most people's lives. When coupled with the impression of negative impact on one's career, Marines are hesitant to seek help when problems first manifest themselves. The delay is usually due to the stigma attached to seeking help for any type of personal problems. Since there is a general trend not to seek help, the Marine often lacks knowledge of the type of help available or from which agencies help would be appropriate, and will often avoid seeking help until the problem becomes too big to handle.

Prevention

• Ensure attendance at Financial Management Classes.

• Integrate personal finance classes into recurring unit PMEs.
• Encourage financial counseling at the prevention stage rather than the intervention stage.
• Provide access to unit Command Financial Specialist (CFS) / MCCS Personal Financial Management (PFM)
• Allow Marines appropriate time for education and counseling.

Education about personal financial matters is the most important aspect of prevention. Service members must have a solid underpinning of financial concepts to effectively manage their own finances. Commands should ensure Marines understand the basics about their pay and entitlements, budgeting, saving, and credit management. Marines should be encouraged to establish specific plans in such areas as budgeting and saving, and to seek financial counseling if needed, to prevent financial problems from developing. Seeking education concerning other financial matters as life situations change should also be encouraged. 

Suggested Resources

Marines can avail themselves of financial assistance available through the following agencies:

• USMC Financial Fitness Resource – Online tool which provides a variety of tools and information on financial issues including, Savings and Investment, Banking, Financial Planning, Managing Debt, and much more.
• Marines can avail themselves of financial assistance available through the following agencies:
  • MCCS Personal Financial Management (PFM) Specialist
  • Command Financial Specialist (CFS)
  • Navy and Marine Corps Relief Society (NMCRS)
  • Military OneSource
  • Marine's financial institution
  • Installation Legal Assistance Offices
  • Consumer Credit Counseling Agencies

The MCCS PFM counselor and unit CFS can provide classes and one-on-one counseling to help the Marine establish a sound financial plan. NMCRS provides financial, monetary assistance, for many emergency and unplanned expenses a Marine may face. Many other financial dilemmas can be addressed through the Marine's financial institution, the legal assistance office, and consumer credit counseling agencies. The key is for the Marine to communicate openly and honestly with the providers that staff these helping agencies.

Guidance

DoD Instruction 1342.27   Personal Financial Management for Service Members

DOD Instruction 1344.07  Personal Commercial Solicitation on DoD Installations

DoD Instruction 1344.9 Indebtedness of Military Personnel

OPNAVINST 1740.5A DoN Personal Financial Management Education, Training, and Counseling Program SECNAVINST 1740.4 (Will replace OPNAV 1740.5A early 2007)

SECNAVINST 1754.1B DoN Family Service Center Programs

MCO P1700.24B Marine Corps Marine and Family Services Manual

Key Terms