April 10, 2003

 

Families of Troops May Face Financial Trials, NDSU Expert Says

In addition to the emotional turmoil triggered by the call up of reservists and national guard troops, affected families often must cope with financial upheaval, says a North Dakota State University financial management specialist.

"The call up has a huge impact on these families financially," says Debra Pankow, a family economics specialist with the NDSU Extension Service. "Many of these families are losing 10 to 50 percent of their income depending on employer benefits."

"In March it was announced that North Dakota was one of the hardest hit states with the call up impacting 36 of every 10,000 residents," she notes. That impact has been felt in county offices of the NDSU Extension Service where information and advice on financial management have been in high demand.

Although the Soldiers and Sailors Relief Act offers protection and some relief from credit obligations, families of troops need to be aware of the act’s provisions and work through their JAG (judge advocate general) officer, Pankow says.

She says the best prepared families have emergency savings accounts to help make up for the loss in income. "Families also need to have a good handle on family finances and spending. That allows them to decide where they can cut back. Communicating about family financial matters before deployment is very necessary."

In addition to information from extension offices, most military bases have family financial management counselors to assist soldiers and their families. Other community organizations may also provide advice and assistance.

"It’s very difficult for families to get beyond the stress of the situation," Pankow says. "The partner that’s left behind shouldn’t make important financial agreements unless they absolutely need to be made. Stay away from long-term purchase agreements or signing up for services."

If you do need to make those decisions in the absence of a spouse, Pankow recommends finding a "financial buddy."

"Find someone who can be your buddy, someone you can trust and you can call on for questions on financial issues. That person oversees what your doing and can help you make decisions."

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Source: Deb Pankow, (701) 231-8593, dpankow@ndsuext.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu