Money Terms Every MilSo Should Know

09/03/2014 By Rachel Tringali Marston

Servicemembers and their spouses quickly learn that the military lifestyle includes a lot of acronyms and code words. DoD (Department of Defense), MOS (Military Occupational Specialty), Temporary Duty (TDY), Roger, Copy. The list goes on and on.

What military spouses don’t realize is the importance of knowing military financial terms.

There are so many different components to remember and understand that spouses should educate themselves too. Military members completely rely on MyPay to access their earnings, so you should consider setting up a limited access account too.

Below is a list of the must-know financial terms that will help military spouses digest and navigate through all the sections of the Leave and Earnings Statement (LES) and military life.

Defense Finance and Accounting Service (DFAS): The accounting and financial institution responsible for paying military members, DoD employees and other governmental departments. DFAS is also responsible for retirement pay.
Basic Allowance for Housing (BAH): The amount given to a service member based on their location, rank and dependent status assessed from the regular housing market on or around the duty station. Formerly called Basic Allowance for Quarters (BAQ), it’s still in LES statements as such, but means the same thing as BAH.
Cost-of-Living Adjustment (COLA): The taxable amount given to designated families to fund non-housing costs depending on their location to supplement the area’s cost-of-living. Not all duty stations receive it and to find out if your location includes COLA pick your area here: OCONUS (overseas) or CONUS (continental United States)
Basic Allowance for Sustenance (BAS): The money given to military members to offset the cost of food with all ranks within enlisted or officer getting one set amount unless overseas.
Family Separation Allowance (FSA): Military members receive this when they are away from their duty station and family for a TDY lasting more than 30 days OR on an unaccompanied tour that brings them to another location.
Hostile Fire/Imminent Danger Pay (HFP/IDP): It’s mostly given to military members deployed in dangerous situations and is determined on location and/or certified by the commander. Both pay categories are categorized together but still separate, read here for specifics.
Hardship Duty Pay (HDP): Classified into 3 different categories: location, mission and tempo, it’s given to service members that are assigned to areas that offer lower than standard living conditions depending on the duty.
Assignment Incentive Pay (AIP): It’s additional pay awarded to military members that have a non-typical duty or or even extended stay. Mostly given to those that volunteer for a particular service.
Hazardous Duty Incentive Pay (HDIP): Pay given to military members that holds a job considered hazardous like flight crew and/or parachute teams.
Thrift Savings Plan (TSP): The type of retirement plan given to service members that can be deducted from their pay. Similar to the civilian 401(k), it’s a great way to invest and is encouraged for service members.
Date of Initial Entry to Military Service (DIEMS): This is the date that you first entered into military service and cannot change. It’s very important in calculating your retirement benefits when it comes time.
Pay Allotment: Military members can utilize allotments to help with various payments that are required such as loans, rent or outside insurances. The funds are taken away straight from pay and given to the designated institution.
Federal Insurance Contributions Act (FICA): There are particular deductions that are taken away from military members’ pay, such as Federal Taxes, Social Security and Medicare.
Servicemember Group Life Insurance (SGLI): The deductions via military members wages that covers life insurance. If servicemembers have dependents, there is a separate deduction for family members. This covers life insurance during time in service.
Survivor Benefits Plan (SBP): Signing up for a SBP typically happens at retirement and funds are deducted from retirement pay, which gives surviving family members an annuity (a specific amount per month based on the lifespan of the beneficiary) in the event the servicemember cannot receive it anymore.
Retirement Plan (RET PLAN): Usually, at a minimum of 20 years, servicemembers are granted retirement pay. It should currently be on your LES statement. Depending on your plan of service, there are four different plans that the military can chose from: Final Pay, High-36 Month Average, REDUX and Disability. To decide the best plan, members should seriously consider their military path. This link calls out each plan in more detail: http://militarypay.defense.gov/retirement/.

There are a handful of civilian financial terms that are uncommonly known that you should know outlined below.

Net Worth: Think of it this way, it’s all your total assets (the money that goes in your pocket plus other investments like if you own a home) minus liabilities (debt and/or overhead costs). The overall wealth of your family.
FICO score: The FICO score is calculated using the figures from your consumer credit files on: Experian, Equifax, and TransUnion as well as other factors based on your credit habits with your payment history as the number one contributor. That’s why it’s very important to pay bills on time, at it’s minimum and pay it off in a timely manner.
Interest: It’s a designated percentage based on a figure that is given in a set amount of time typically calculated in savings plans and credit debt.
Individual Retirement Account (IRA): Separate from a 401(k) or TSP, it’s an account put together by an individual usually via a bank or credit union that saves money for retirement. The funds that are collected are set-up to be tax-free or tax-deferred depended on the type of IRA. There are three types: Traditional, Roth and Rollover. It’s recommended to establish an IRA, especially if having a 401(k)and/or TSP isn’t available. Who wouldn’t love extra money at retirement that offers tax benefits?! Consult your financial adviser.

Did you know these military money terms? Did we miss any? Please share them in the comments section below.

5 Tips to Reduce Relocation Expenses

07/10/2014 By Michelle Volkmann

How do you save money during a PCS? Share your tips in our comments sections.

I always underestimate the cost of a PCS. I tell myself that the Navy moves us so relocating from one military installation to another isn’t expensive. I don’t pay for anything. Right? This is my mental talk 30 days prior to a PCS. Then the whirlwind of the PCS happens and I am reaching for my credit card more than I have in the last 2 years. 60 days later when I am reviewing our credit card bill at our new duty station, I am shocked by the balance. How did we spend ALL this money?

The average service member shells out $1,725 for non-reimbursable moving expenses. That’s nearly $2,000. Let’s say that we move every 2 years during my husband’s 20-year career. That’s a total of $17,250 of MY money to move for the Navy. No thank you.

This year, we will be moving again and I’m committed to reducing our relocation expenses. But how do I cut costs when we are homeless and living out of our car?

Here are 5 tips for reducing relocation expenses when transferring to a new duty station.

Save for a Sensible Spending Plan.
Call it a budget. Call it a spending plan. It doesn’t matter. But make a plan for how much it will cost to set up your new home. Calculate an estimate for security deposits for housing and utilities. Cut back on eating out in the last 3 months of your current duty station and put that money in to a savings account. You’ll need it when you establish your new home. Do not depend on your Dislocation Allowance to cover all of your expenses. It never does.
Negotiate and Ask to Speak with a Manager.
Practice saying this phrase “Is that the best price you can give me?” When you set up your Internet and cable, ask for the “best price.” Let them know that you compared prices between different providers and ask if the company offers a military discount. You will never get a discount if you don’t ask for it. If you have a credit score of higher than 600, ask if your landlord will consider reducing the security deposit. Mention that you’re a classy military person who pays your monthly rent on time every month.
Embrace House Camping.
Hotels are expensive. Even staying at the lodge on base can get expensive after more than 5 days. If you don’t have your household goods, but you have a home, consider house camping. Eat on the floor, sleep on an air mattress, let your kids bounce a ball against the wall and eat food that you prepare out of your microwave. Is it ideal? No. Will it save you money? Absolutely.
Buy Used –Not New– Whenever Possible.
When we moved to Maryland, for the first time we had a yard. This was great news until I realized a yard means grass which means we needed to mow the yard. We didn’t own a lawnmower. Foolishly we bought a brand-new lawnmower. Now we live in California. We don’t need the lawnmower and it sits, collecting dust in our already-stuffed garage. What’s the lesson? Be patient and buy seasonal items used online. I recommend SargesList and those Facebook Yard Sale groups. For every military installation, there is a military spouse monitoring a Facebook group.
Take Another Service Member’s Trash.
Through Facebook you can connect with military spouses at your new duty station. Guess what? If you are moving there, I bet someone else is leaving that duty station. Most likely they have cleaning supplies, spices and random other things that they can’t or don’t want to take with them. Offer to take it. Free stuff doesn’t cost you anything.

Plan ahead to save money during a PCS.

What are your tips for saving money during a PCS?

Deployed Spouse Causes Distraction, Worry

06/27/2014 By Julie Provost

Dear MilitaryShoppers,

My husband is currently deployed. I feel lucky to have a job that keeps me busy, but honestly I‘m distracted at work. I am constantly checking my phone to see if my husband called and I’m not sleeping well at night. I feel like I might quit my job. What should I do?

Signed,

Distracted Milso in Virginia Beach

Dear Distracted Milso,

I can totally understand always wanting to check your phone to see if you missed a call. I also know how hard it can be to not be able to sleep at night.

One thing that might help is writing your husband letters as well as writing in a journal every night. By writing him letters you will feel like he is more connected to you and you can write them at anytime. You don’t have to wait for him to be online or call you. By writing in a journal each night you will be able to fall asleep a little easier. If you can get all your worry out on paper, it will make you feel a little better and more likely to sleep.

How to Keep Busy When Your Husband is Deployed

Try to keep your phone in a drawer while you are at work.

As for if you should quit your job or not, I think it depends. What would you do to fill the time that you would normally be at work? You want to stay as busy as possible so if you know you would be bored without a job, it is not a good idea to quit. You might want to make a list of pros and cons about your job to see what would be the best decisions for you.

If you feel comfortable enough you could talk to your boss about what is going on and see if he or she has any suggestions to help make work a little easier for you. You could also try to keep your phone in a drawer or out of sight while you are at work.

Good luck to you. Remember that as hard as deployments are, they don’t last forever. It is just about figuring out the best way to make it through them.

Do you have a military community question? We want to hear from you. Submit your question today.

Lonely? Find Friendships at Every Duty Station

06/20/2014 By Julie Provost

Tips for Military Spouses to Make Friends at a New Duty Station

Let your children take the lead when it comes to finding new friends.

With military life comes a lot of moving. That means saying goodbye to friends and making new ones. This is a hard part of the military lifestyle. Finding new friends when you are the new one in town can be quite difficult.

If you have just moved into your new neighborhood, you might get lucky and have new neighbors come to your house and say hello. New neighbors can make the best friends. It is great when you are able to meet and click with them right away. But what happens if …

No one comes to your house to say hello?

Every one in your circle of friends, except you, gets orders to new duty station?

You are feeling lonely in your new home?

I have met friends at all types of places. From swim lessons for my kids to Bible studies. Sometimes it is just a matter of being brave and reaching out. Other times it is just a matter of being in the right place at the right time.

Here are the top 4 places to find friendships at your new duty station.

Local Playground

If you have kids, take them to the park. You will most likely run into other parents and children who live near there. Be brave and strike up a conversation. If your kids hit it off, make plans to get together again. If you don’t meet anyone new at the park, at least your kids had a good time.

Facebook Group

Another option is to join a local Facebook group and go to one of the events. It might feel weird to go some place new when you don’t know anyone but it will be worth it.

Simply Say Hi: Tips for MilSpouses to Find Friendships in New Neighborhoods

Feeling lonely? Be brave and leave your house to meet new friends.

Your Neighborhood

If you are feeling brave, you can always go up to your new neighbors and say hello. One idea is to ask them a question about your new city. Something like, “Can you tell me the best place to get Chinese food?” can be a way to break the ice and strike up a conversation.

Sometimes it is just a matter of being brave. Other times it is just a matter of being in the right place at the right time.

Photography Class, Bunco or CrossFit

When you are new to a duty station, the best way to find friends is to do is find events or classes that look fun and go to them. You are bound to make friends if you do that.

Where do you find friends when you are the new one in town?

Decoding the Military Commissary Dress Code

06/16/2014 By Michelle Volkmann

“You can’t wear that.”

“What do you mean I can’t wear this?” I told my husband. We were recently married and living in Yuma, Arizona. It was a Sunday afternoon nearly 10 years ago and I remember it like it was yesterday. It was my first experience with the dress code that exists for service members, dependents and their guests at military installations.

I was wearing a tank top, shorts and sandals. Apparently I wasn’t dressed appropriately for our planned trip to Marine Corps Air Station Yuma’s commissary. My husband looked me up and down and told me I was wearing “workout gear” and “shower shoes.”

“Shower shoes,” I scoffed.

Clearly I was not wearing shower shoes and I was wearing a tank top because it was more than 90 degrees outside. But being a new military spouse, I changed before heading to the base. Once we walked through the sliding glass doors at the military commissary, my husband pointed to the dress code policy sign. One question popped into my head.

Does this dress code apply to military spouses?

The short answer is yes. The dress code applies to military spouses and anyone else with base access, including dependents, retirees, civilian employees, contractors and civilian guests.

Is the dress code enforced? What’s the penalty for breaking the dress code?

Here’s where it gets complicated. At every U.S. military installation around the world, there is a dress code for the commissary, exchange and gas station. The dress code is an order that is normally posted near the front doors of these base businesses. The poster explains that civilian clothing must fit properly (not too tight, not too loose) and that patrons are prohibited from wearing pajamas, athletic shorts, swimsuits and spandex-type gym attire.

The dress code at the commissary applies to service members, their dependents and guests.

If you break the dress code, a service member who is tasked with “policing their own,” will point out that you are inappropriately dressed and deny you access to that facility. This happened to a Navy spouse after a Marine said her 7-year-old son was wearing workout gear to the commissary in Kaneohe Bay. They were refused admission. After her son changed his shorts, the two returned to the commissary to buy their milk.

One important piece to decoding the dress code: The dress code isn’t the commissary’s policy.

It’s the installation commanders who order and choose to enforce or not enforce the dress code. That’s why a service member, not a commissary manager, is the person publicly pointing out your noncompliant attire. It’s the reason why dress code enforcement is inconsistent among military installation and even among different military branches. It’s also the reason I dress up to pump gas at a Marine Corps gas station, but never sweat my wardrobe at an Air Force commissary.

Are the military dress codes for shopping at the commissary outdated?

Flowers from Iraq: Celebrating Mother’s Day During Deployments

05/05/2014 By Julie Provost

My husband, like many military service members, always seems to be either deployed or away at training in May.

Julie planned a relaxing day for herself when her husband was deployed on Mother’s Day.

Being gone in May means missing Mother’s Day. Repeatedly. Three years in a row, my husband wasn’t home for Mother’s Day.

I am the first to tell you it can be really difficult to enjoy Mother’s Day with your three children when your husband is far from home.

Mother’s Day is not a day of pampering when your husband is deployed.

For my first Mother’s Day during a deployment, I created a fun and relaxing day for myself. No, I don’t eat breakfast in bed or lounge on the couch with my favorite book. But we ate my favorite meal. We watched a fun movie and I tucked the kids in bed early that night. Obviously it wasn’t the same as having my husband home but it made for an easier and more relaxing day for me.

That’s a realistic goal for Mother’s Day during a deployment: an enjoyable and relaxing day.

How do you do that? Here are 3 ideas.

Spend Mother’s Day outside with your children.

Spend Mother’s Day with your Mom or Mother-in-Law

One year I asked my mom to visit while my husband was gone for training. We spent the day together. We got some lunch, took the boys to the park and let them run around while we sat and chatted. That year, I didn’t celebrate Mother’s Day as a mom instead I celebrated the holiday as a daughter.

If you can’t be with your own mom on that day, you could ask a friend if she wants to spend the day together. It doesn’t have to be anything fancy. Just something to help your kids stay active and help you have some fun time with another adult.

Plan a picnic or take a long walk with your children when your husband is deployed during Mother’s Day.

Take a Mother’s Day Stroll

If you know that being stuck in the house on Mother’s Day will depress you too much, plan a short trip somewhere, even if it is a nature walk around your neighborhood.

[button link=”https://twitter.com/milshoppers” size=”xl” color=”silver”]Follow us on Twitter![/button]

When my boys were very young and my husband was gone, I put them in the double stroller and went for a very long walk. This took up a lot of time and I was able to get outside and enjoy myself a little. We didn’t have a special meal but I brought my camera and we had fun walking around our village in Germany together.

When All Else Fails … Hope for Flowers

One year I got flowers all the way from Iraq. That made my day, especially since my husband doesn’t normally send me flowers.

It can be so difficult to celebrate holidays alone during deployments or other separations. However, by planning a little bit, you can still make sure you have a special Mother’s Day even without your husband at home.

How will you celebrate Mother’s Day this year?

3 Communication Tips for Deployments

04/24/2014 By Julie Provost

Communication. It’s difficult in any marriage. But when you are married to a military service member, the challenges of communication are complicated by deployments and extended periods of separation. To say communication is difficult in a military marriage is putting it lightly. (OPSEC, anyone?)

How can you improve communication during a deployment?

In those moments– when the phone doesn’t ring or an email doesn’t pop up on your smartphone– you wonder “when is he going to call?”

Here is the good news: he will call. If he can, he will call you.

The methods of communication have been different for my husband and I during each of our four deployments. For the first deployment my husband and I wrote letters, talked on the phone about once a month, and had a period of time when he was online all day where he was working. Our second deployment he had Internet access in his room. This was nice because he was able to get online a lot. His third deployment was a little harder for him to communicate. During his fourth deployment we talked on Facebook most of the time.

Since I’ve experienced a variety of communication situations through four different deployments, I would like to offer these 3 tips for communication during a deployment.

Talk About Expectations

Before your spouse leaves, talk about your communication expectations for the deployment. Do you want him to write letters? How often would you like him to try to call? If calling everyday is an option do you want that?

Sometimes it is better to not talk everyday. Then you won’t need to worry about listening for his phone call at the movie theater with your friends. When he does call, you can give all your attention to that phone conversation.

Your military service member may know what type of communication methods he will have access to at his military base. But understand that compared to today’s world of constant contact, communication options may be very limited where they are stationed.

They might not have access to the Internet regularly and if they do, it can be spotty. Phone calls might be difficult to make based on what is available. Mail can take a while, even months.

On the other hand, some places are equipped with better technology. Sometimes the deployed service member is allowed his or her own cell phone and laptop computer. Be flexible and adaptable.

Communication takes creativity during deployments.

Expect Some Silence

Another thing you must remember is that sometimes your service member can’t contact you. I once waited a whole month before I heard from him, and although it is really hard and frustrating, I just had to do it. Keep in mind that as much as you are missing them, they are missing you.

Letter Writing is Romantic

Yes, writing letters is old-fashioned and your handwriting is awful, but sometimes it is the only method of communication during a deployment. Try to write letters during times when you can’t communicate any other way. It can be a romantic way to keep in touch when technology isn’t an option.

Communication during deployments is hard. With a little creativity and some patience, you will take this challenge to strengthen your marriage.

What do you think? What’s a creative way to communicate during deployments?

« Previous Page