The Hidden Battle: Financial Well-Being and Mental Health in Military and Veteran Communities

For service members and their families, financial and emotional well-being are more connected than we often realize. Nearly half of the general population deals with financial stress, but military families face added pressures that can make both money and mental health struggles even harder. Recognizing this connection is key to truly supporting those who serve.

The Financial Reality for Military Personnel and Veterans

Research from the National Foundation for Credit Counseling (NFCC), conducted by The Harris Poll and sponsored by the Wells Fargo Foundation, found that military households—including both service members and their spouses—are more likely than the general population to face financial challenges, rely on non-traditional financial services, and express a strong need for professional financial guidance.

The transient nature of military service significantly impacts financial stability. Frequent relocations disrupt banking relationships, often resulting in unexpected fees due to account inactivity or failure to maintain minimum requirements. Important banking communications—such as policy changes or account updates—often go unnoticed when sent to outdated addresses, allowing fees to accumulate over time.

These regular moves create hardships, particularly for military spouses. Career continuity becomes nearly impossible when relocating every few years, severely limiting professional advancement opportunities. This employment instability directly affects a family's ability to build emergency savings and contribute consistently to retirement accounts.

Financial Health and Mental Well-Being

Financial difficulties extend far beyond bank statements. They often manifest as stress, anxiety, concentration difficulties, and sleep disturbances. For veterans, financial challenges can significantly complicate an already complex process of post-deployment adjustment.

A journal published in the Oxford Academic on financial well-being and post-deployment adjustment in veterans identified strong connections between financial problems and serious issues including homelessness, incarceration, substance abuse, physical aggression, and suicidal ideation. Even seemingly routine financial missteps, such as writing bad checks, have been strongly associated with an increased risk of homelessness.

Additionally, diagnoses common among veterans—including PTSD, major depressive disorder, and traumatic brain injury—can further complicate financial management capabilities. The 2025 Warrior Survey, published by Wounded Warrior Project (WWP), reported the top three barriers for WWP warriors entering the workforce are: psychological distress or mental health issues from a service-connected disability (24.7%), physical injury from a service-connected disability (22.4%), and retirement (14.8%). Even more striking, more than four in six WWP warriors (67.3%) indicated that at some point in the last 12 months, they did not have enough money to make ends meet (i.e., to pay for rent/mortgage, food, utilities, phone, or other basic needs).

The intersection between financial stability and mental health highlights the importance of addressing both simultaneously, particularly for those transitioning from military to civilian life. Financial education, counseling, and support services represent critical resources for service members navigating these unique challenges.

Enhancing Financial Stability Through Education

Improving financial stability among service members and veterans hinges on effective financial education that both increases knowledge and encourages positive financial behaviors. One such component of this is financial readiness. The Department of Defense (DoD) defines financial readiness as, "the state in which successful management of personal financial responsibilities supports a service member's ability to perform their wartime responsibilities.”  

Financial readiness depends on compensation, budgeting, debt management, and sound financial planning. A study published in the Defense Technical Information Center states that improvements to the DoD’s Financial Readiness program, such as providing more training, education, and resources, would greatly reduce financial stress turnover rates within the military, while also improving mental well-being.

While many service members rely on military family service centers and command-level resources for financial guidance, the responsibility extends beyond military institutions. Community organizations serving military populations must recognize financial literacy as a core component of their support services—not an optional add-on. By integrating financial education into existing programs, these organizations can help bridge the knowledge gap and provide service members and veterans with the tools they need to build financial resilience.  

A collaborative approach between military institutions and community partners is the most effective path toward meaningful improvement in the financial well-being of those who serve.

Tips for Taking on Financial Stress

Tackling financial stress and its impact on mental health takes a well-rounded game plan. Here are some ways to start easing the pressure:

• • Take Advantage of Military-Specific Benefits: Take time to understand what’s available to you—housing allowances, Cost of Living Allowance (COLA), and other entitlements can make a big difference. ‍
• • Establish an Emergency Fund: Military life comes with unexpected transitions. Aim to build 3-6 months of essential expenses in an easily accessible account. ‍
• • Get Expert Support: There are military-friendly resources out there designed to help you manage your finances without judgment. ‍
• • Talk About Money: Set up regular check-ins with your partner so you’re both in the loop and working as a team. ‍
• • Set Small Goals: Start with something within reach—like paying off a small debt or building a mini emergency fund—and use that success to build momentum.

Reclaiming Your Financial Freedom

The relationship between financial wellness and mental health in military communities represents not just a personal struggle for those affected, but a public health challenge requiring comprehensive solutions. Acknowledging this connection and breaking the stigma is the first step toward more meaningful, lasting support.

Addressing financial wellness isn't secondary to mental health care for military personnel and veterans—it's an essential component. Treating these challenges as interconnected allows us to better honor our commitment to those who have served by ensuring they thrive both financially and mentally after their service concludes.

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