A Navy Federal Credit Union survey indicated active-duty military members who were born in the 1980s and 1990s have greater financial awareness than their civilian peers.
“They seem to have all their ducks in a row,” said Michele Foster, a regional manager with the credit union.
The survey, conducted by third-party vendor ORC International, stated military members are financially stronger, have greater sense of financial satisfaction and optimism, are better planners and are more likely to bank online.
“For any community, it would speak volumes,” Foster said about the survey results. “It shows that they do have an investment in themselves.”
Out of those polled, military members were almost twice as the general population to have a household budget and review it twice a year.
Sixty percent of those military members also said they saved more money in 2013 than 2012. In the general public survey group, 52 percent said they saved more in 2013.
“There are service members who are trying to save to the future,” Foster said. “It is not only for their financial future; if they are not on top of their finances it could affect their families.”
The survey also compared the groups on opinions about issues such as the national economy.
Fifty-nine percent of the military group said they have confidence in the economy while 52 percent of the nonmilitary group had the same opinion.
Results from the survey show that service members are financially responsible, said Raleigh Miller, a spokesman for the credit union.
Being more fiscally responsible can often lead to people contributing or having a greater impact in their community, Foster said.
“They are going to take care of their business, and they are going to be solid contributors to their community,” Foster said.
Navy Federals full survey results:
1. U.S. Active-Duty Millennials Show Much Stronger Financial Knowledge and Habits Than Other Millennials
a) Budgeting: Active-duty millennials are roughly twice as likely as the general millennial population to have a household budget they review at least annually.
b) Emergency fund: Active-duty millennials are also twice as likely as all other millennials to have an emergency fund of three month’s pay saved.
c) Savings: 60 percent of active-duty millennials said they will have saved more in 2013 than in 2012, while 52 percent of the general millennial population say they will have saved only the same or even less this year than in 2012.
d) Financial readiness: 73 percent of active-duty millennials are prepared to confront a personal disaster that impacts their finances, compared to only 49 percent of all other millennials.
e) Millennials in the general population are almost twice as likely to report living paycheck to paycheck as active duty millennials
f) 65 percent of military millennials have checked their credit score in the last year, compared to 41 percent of millennials in the general population
2. Active Duty Millennials Report Greater Financial Satisfaction, While Both Groups Have a Similar Level of Confidence in the Economy
a) Financial satisfaction: 79 percent of military millennials are satisfied with their current financial situation, compared to only 61 percent of general population millennials
b) Confidence in the economy: 59 percent of active duty millennials are confident that the economy will afford them the opportunity to meet their financial goals over the next five years, while 53 percent of general population millennials said the same.
3. Financial Optimism of Millennials Surpasses Their Financial Habits and Planning
a) Both millennial groups are financially optimistic: 88 percent of active duty millennials and 74 percent of millennials in the general population feel that they are on track with their financial goals over the next five years.
--Despite optimism, all millennials have room to improve and are ripe for financial education in many areas:
b) Only 62 percent of active-duty millennials and 46 percent of all other millennial households said that they knew enough about how to manage their finances to meet their financial goals
c) While 44 percent of active duty millennials have a budget that they review at least annually, just 23 percent of millennials in the general population reported that they have such a budget.
d) 41 percent of active duty millennial households have an emergency fund of three months pay saved, while only 19 percent of other millennials do.
4. Active Duty Shows a Stronger Preference for Mobile Banking Than Other Millennials
a) The general millennial population does their banking in the branch 23 percent of the time, while military millennials bank in the branch only 7.5 percent of the time (higher preference for mobile banking).
b) Active duty millennials do over 27 percent of their banking with a mobile phone, versus other millennial households who bank with their mobile phone only 18 percent of the time.
1. Active-duty millennials in the survey are defined as anyone aged 18-34, who is an active duty member of the U.S. Armed Forces or the spouse of an active duty member.
2. Millennials of the general population are defined as anyone in the U.S. aged 18-34.
3. For more information on ORC International, please visit their website: http://www.orcinternational.com/US/Pages/default.aspx