Military
Guidelines and Considerations
Please use the following guidelines and considerations to help you and your family
prepare for your financial and personal responsibilities. It’s always best to plan
ahead.
Savings and Checking Accounts – These should be maintained either in the hometown
or at each permanent station, so checks can be cashed.
All Accounts – Open all accounts in both spouses' names with "or" between the names
instead of "and" so only one name is required to cash or deposit checks.
Direct Deposit - Direct deposit is the quickest and the most convenient way to receive
your pay check. Having direct deposit will enable both you and your family members
to have easier access and more control of your funds. It may take one or two weeks
after you initiate direct deposit for it to be activated. The reservist can be deployed
to any part of the world and still have access and control of their funds. Check
with your bank or credit union.
Prevention of Overdrawn Accounts - An allotment can be set up to avoid overdrawn
accounts. A portion of your pay will be automatically set aside each month for an
individual, a mutual fund, creditors, etc. In the event of a deployment, a couple
may also want to open a second checking account established in the military spouse's
name, so he or she will have their own money to spend.
Financial Bills – Service members are responsible for their household expenses/bills
while they are deployed. These expenses include rent, mortgage payments, car payments,
credit cards, etc. Before deploying you should ensure that you have made arrangements
for these bills to be paid. You may wish to appoint your spouse or family member
with power of attorney, so that they can handle your finances while you are deployed.
Taxes Due - If you are deployed when your taxes are due, decide in advance how
income taxes will be filed and who will do it. You may wish to file for an extension
through the Internal Revenue Service by filing Form 2350: Application for Extension
of Time to File U.S. Income Tax Return.
A Will - One of the most important tasks an individual or couple can do for personal
and family readiness is to prepare a will. A will ensures that your children have
someone to take care of them and that your estate is disposed of properly.
