The National Credit Union Administration (NCUA) maintains financial literacy is essential to prevent service members and their families from being fiscally exploited.
“Service members and their families face unique financial challenges, whether serving on active duty, returning to civilian life, or living as a veteran,” J. Mark McWatters, NCUA board chairman, said. “A strong foundation of personal finance knowledge, knowing how to save and create a budget, and understanding the value and importance of money, is essential in today’s rapidly evolving financial marketplace. Not only does it affect an individual’s financial well-being, it also has implications for the economic well-being of the nation and, in the case of service members, our military’s readiness.”
The Financial Literacy and Education Commission said while the benefits of financial literacy and personal financial education have been proven, only 17 states require high school students to take a personal finance course before graduation.
McWatters said the result is too many people entering the military lack a basic understanding of financial concepts or do not know how to apply them to real-world financial situations.
“The financial decisions these young soldiers, airmen, sailors, and marines make today will affect them for the rest of their lives,” McWatters said. “It is important that they start off on the right path. Military credit unions play an essential role in educating these young service members.”
The NCUA said through its consumer website, MyCreditUnion.gov, resources are available in a variety of formats, including brochures, videos and interactive learning tools to help credit unions with financial education programs.