As Veterans Day approaches, the financial challenges facing American military households come into sharp focus. The holiday not only honors veterans, but also highlights the ongoing struggles of current service members, especially amid rising costs for essentials. Recent data from the U.S. Census Bureau’s Household Pulse Survey revealed that military families are increasingly finding it difficult to cover basic expenses like food, housing and transportation compared with the average American.
The survey raised three key issues:
Difficulty covering household expenses. Respondents were asked about the difficulty of covering usual expenses, defined as “somewhat difficult” or “very difficult.”
Stress due to price increases. Participants reported on the stress related to recent price increases, defined as “moderately stressful” or “very stressful.”
Concern about future price increases. Respondents indicated their level of concern about future price hikes, defined as “somewhat concerned” or “very concerned.”
The Household Pulse Survey showed that military personnel are experiencing greater financial strain than the general population. It revealed that over 40 percent of service members report difficulty covering their usual household expenses, compared to 36.6 percent of all adults in the U.S. Additionally, nearly 80 percent of military personnel express anxiety about rising prices, exceeding the 71.8 percent of all adults with similar feelings. Moreover, 81.8 percent of service members say they are concerned about future price hikes, indicating widespread uncertainty about inflation’s long-term impact.
The financial burden on military families varies significantly by state, largely due to local economic conditions. Data reveals that Utah has the highest percentage of service members struggling to cover basic expenses, 53.7 percent, followed closely by Louisiana (52.9 percent) and Alaska (52.8 percent). Other states where over half of service members report financial difficulties include Indiana (52.0 percent), Tennessee (51.2 percent), New York (50.8 percent) and Florida (50.3 percent).
A significant issue is that the Basic Allowance for Housing has not kept pace with rising housing costs. In states like Utah, Indiana, Tennessee and Florida, home price increases have far exceeded the national average, exacerbating financial strain.
Another critical factor affecting military families is the high unemployment rate among military spouses. According to the Department of Defense, the military spouse unemployment rate was 21 percent in 2023, compared with the national rate of 4.3 percent. Many military bases are in rural areas with limited job opportunities, particularly in specialized fields. As well, frequent relocations make it challenging for spouses to maintain long-term careers, especially in professions requiring state licenses.
Service members are also more likely to report financial difficulties in states with higher unemployment rates, such as Louisiana, Alaska and New York. Conversely, in nine of the 10 states in which service members report the least financial difficulty, unemployment rates are below average. This suggests that strong local job markets, particularly for spouses, significantly ease the financial burden on military households.
The analysis utilized data from the U.S. Census Bureau’s Household Pulse Survey Phase 4.0–4.2, from Jan. 9 to Sept. 16, 2024. Service members were defined as adults currently serving in the U.S. armed forces (active duty, reserve or National Guard) and their spouses. You can read the full study at https://upgradedpoints.com/news/states-service-members-struggle-most-high-prices/.
It is crucial to recognize not only the sacrifices made by military members, but also the financial struggles they face. With rising costs and ongoing economic challenges, addressing these issues is vital to ensuring the well-being of those who serve.
Alex Miller is the founder and CEO of Upgraded Points, which provides in-depth content on a variety of topics.