Financial Conversations for A PCS Part 1
When researching for financial aid during a PCS, two types of results popped up. The first were programs, which we already talked about, and the second was more along the lines of preparations that individual families should make. This is important to discuss and prepare for, so let's go over these recommendations.
1. Get on the same page
This is pretty standard advice for couples. We need to both be in the know about where our finances are at. In my family, I handle most of the finances because it stresses my husband out, but we are both very clear about what the red flag zones are for our bank accounts and credit cards. If we come close to those spaces, then we know to pull back and focus on savings. However your family divides the responsibility of finances, make sure that you stay on the same page about what is going on and what needs to change to better serve the family.
2. Close and transfer accounts
I think everyone has their own personal philosophy on where they bank. When we moved to Oklahoma, the nearest location for our bank was in Dallas, which was 3 hours away. We didn't change banks, though. We just kept our account, and it was really only an issue once in four years when I had to get a certified check for buying our first home. That bank had many locations near our families, so we could gain access pretty easily if we ever needed something in person.
This is a good time, though, to shop around for rates. Moving to a new state means new car and home insurance. We usually go through a broker to find the best rate since we aren't opposed to switching companies. It's worth looking into if you don't feel any loyalty to the current organization or if rates are dramatically different at the new location. It's also worth looking into switching things like phone carriers or internet providers for better rates since the good brands in one area may not be the strongest in others. I know that when we switched to AT&T Internet, they offered us a pretty significant discount on our phones compared to what we were paying. We had just upgraded, though, and it felt wasteful to switch companies to replace our fresh out-of-the-box phones.
3. Pay current bills
I know everyone knows they need to pay their bills. People generally aren't trying to skip out on their last month of utility bills. That being said, it is easy to forget about these things in the middle of moving. If you only get paper statements rather than e-statements, make sure that there is a forwarding address in place. Most utility companies are more understanding of missed or late payments in post-covid times. Still, a forgotten bill that sits for a while can affect our credit, which can significantly impact our ability to get the housing we want in our new location. We've always used my parent's house as a forwarding address when we haven't had one, so the mail got to someone who could check it and see if it was urgent.
4. Compare the value of housing allowance
Here's another one that I know we all know how to do. Check the BAH for your incoming base because it may be drastically different from your current one. Ours went up about $300 in the move, which allowed us to afford more house in the new area. We can also find that BAH is not up to par with where we are going. Our second choice base Hill AFB in Utah and we found that the BAH would mean downsizing. Fortunately or unfortunately, we have to make housing decisions based on the BAH at the new base. We try our best to stay under it since we are a single-income household. We have dual-income friends who stay within a specific range over it. Do what works best for you, but keeping the ratios the same during a move (if possible) will help with the cost of living at a new base.
5. Save receipts
We went over this in the programs section, but make sure to save your receipts. Some things qualify for tax deductions that did not qualify for military reimbursement. Keeping track of receipts can also help with staying on top of whatever budget you set. It also helps give a better idea of the cost for next time so that we can be more prepared for the upcoming expenses.
6. Save money for new licenses
So much of this advice comes down to just saving up for the next PCS since we know it's coming, even if we don't know when. Most moves will require a new license for the state which is always at the cost of the individual. Saving up for that now can make it easier to start that process as soon as we get to a new assignment. Hopefully, that decreases the time we are out of work just a little bit more because every day counts.
This will be another two-part section followed by a bit of my ranting about how these things, while they are helpful, are not solutions to the problems at hand. It's all important, and these are conversations that we need to have. It's good to be prepared, especially since another PCS is coming whether we want it or not. It's our job to make the best of this situation, but I think it's time the military started to pick up some of the slack on this responsibility.