$500 or more
Emergency Savings: How saving a little now can save you a lot in the future
The military lifestyle is unique and presents financial challenges for service members that their civilian counterparts may not face. Military families are extremely mobile—they get deployed frequently for months at a time. They are often financially challenged, because military pay is typically lower than civilian pay scales. Both these situations can cause financial strains beyond those experienced by a civilian household.
Cash flow difficulties for military families are further aggravated by emergencies that arise. A death or serious illness in the family, for example, can be extremely expensive for a military family, because they usually must travel greater distances to resolve a family issue.
To help reduce the temptation to use credit in these circumstances, every military family should have an emergency savings account of at least $1,000. With money set aside for emergencies, a military family can be prepared for unplanned expenses and prevent the need for getting a loan.
Many younger service members simply don’t have the credit history to walk into a bank and open an account, and many of them don’t receive the kind of financial education they should. An emergency savings account would let them put a small amount aside at a time (perhaps as little as $50 a month). Over time, even $50 a month adds up. At that level, in just one year, they can create a savings cushion of $600 for emergencies. In two years, $50 a month can turn into more than $1,000, helping them avoid the temptation of high-cost debt.$500 or more
