Wounded Warrior Project Shares Financial Wellness Tips for Veterans

A warrior and his spouse go over finances with financial readiness counselor.

WWP provides financial education and career counseling for veterans, service members, and their families.

Worry, fear, and anxiety about paying monthly bills or saving for the future can significantly impact your life. Too much financial stress can affect your overall well-being.

Wounded veterans are facing increasing financial hardship.

According to the Warrior Survey* from Wounded Warrior Project^® (WWP), more than 4 in 6 (67%) of registered warriors reported having difficulty making ends meet in the last 12 months. The most common reasons for financial strain included the increased cost of goods and unexpected financial hardships.

The survey also showed:

Over 2 in 5 warriors (44%) live paycheck to paycheck (“sometimes” to “all the time”).
44% say they have little to no confidence that they could find money to cover a $1,000 emergency expense.
Nearly 4 in 10 (37%) of WWP warriors indicated they were food insecure.

Fortunately, veterans don’t have to face these challenges alone. WWP offers practical financial advice and resources to help veterans and their families manage expenses, reduce debt, and plan for a more secure financial future.

"It is important to remain calm and understand that help and support are available for your situation. Avoid making financial decisions while feeling pressured or overwhelmed, as these choices can have long-term consequences," said Deborah Holmes, WWP Financial Readiness manager. "Instead, reach out to the WWP Resource Center and inform the team that you would like to explore your options and be connected to the Financial Readiness Program."

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Woman warrior reading flyer about WWP's Financial Wellness programs. — WWP's Financial Readiness program can help warriors create a budget, manage debt, and reach their financial goals.

Whether you want to establish a budget, pay off a bill, or repair your credit, your goal is possible. But you won’t start to chip away at that goal unless you take your first step.

Some tips to consider:

Start small, start specific: Pick one action you can finish today, like listing all bills due this month or setting up a savings transfer.
Define your “why:” Tie your first step to a personal outcome (less stress at the end of the month, saving for kids’ college, funding a certification).
Momentum matters: Emphasize early wins, such as closing a subscription you don’t use or paying a past‑due fee. These create confidence to tackle bigger tasks.

Prioritize Expenses

Identify your most important expenses and include them in your budget. If you enjoy eating out five times a month, maybe that means you cut back on your streaming services. Knowing your financial priorities makes it easier to decide where to save and where to spend.

Some tips to consider:

Needs vs. wants: Break expenses into essential (housing, utilities, medications, transportation, child care) and flexible (dining out, premium streaming, hobby gear).
Mission alignment: Direct your budget toward what you value most. This could mean prioritizing health appointments or family milestones.
Create a checklist: For example, list your top five non-negotiables and identify at least three items you can do without.

Steady Progress Is Essential

Remember that your budget will be a work in progress. Expect to revisit and adjust it based on life changes.

Iterate monthly: Budgets should adapt to fluctuating income (drill pay, disability compensation changes, overtime) and seasonal costs (school, holidays, hurricane prep).
Expect setbacks: Normalize surprises (vehicle repair, medical copay) and reinforce that consistency wins.
Use feedback loops: Compare what you planned to spend with what you actually did spend. If you went over or under in a category, make tweaks for next month instead of starting from scratch. This keeps your budget flexible and easy to maintain.

Financial Wellness FAQs for Active Duty

How much does a single hard inquiry typically move a service member’s score, and over what timeline does that recover?

A single hard pull can lower a service member’s score 3-15 points, especially if they have limited credit history. The impact generally starts to improve within three months and is fully gone by 12 months.

For members who took multiple hard pulls, what’s the order of operations to limit score damage and lower utilization quickly once backpay hits?

● First, use backpay to help bring credit card balances below 30% utilization and immediately catch up on any late payments. For example, if your credit limit is $1,000, try to keep the balance below $300.
● Pause new credit applications, request soft-pull limit increases, and dispute any duplicate or unnecessary inquiries.

How should troops prioritize which debts to pay down first once backpay arrives to maximize recovery and minimize interest or score harm?

● Pay down credit cards with the highest balances first, especially those with balances over 70% of the limit. This will give you the fastest credit-score boost.
● Catch up any past-due bills and put extra money toward high-interest debts so they stop growing.

For those who used payday/title loans, what’s the safest path to exit without wrecking credit — refinance options, credit-union alternatives, or debt-management plans?

● Replace the payday/title loan with a loan from your bank or credit union to get a much lower interest rate and a safer repayment plan.
● If money is still tight, you can explore nonprofit debt management plans to lower payments and stop fees without hurting your credit.

Track Everything

Keep track of your spending and know how much money is coming in and going out. This is important if you want to manage your money well. People often create a clean budget but don’t track their daily spending.

Use financial apps. Budgeting and financial management apps can help you track your spending, set savings goals, and stay on top of your finances.
Watch the “leaks:” Coffee runs, app purchases, rideshares — small transactions that add up.
Income clarity: Include all inflows: wages, VA disability compensation, GI Bill, housing allowance (if applicable), side gigs, tax refunds.

Have an Emergency Fund

A calculator and budget paperwork. — Keeping a budget and tracking spending can help keep you on top of your finances.

Establish an emergency savings account to prepare for the unexpected. Consistently contributing to an emergency fund may prevent you from having to take out credit or increase your debt. Most experts say this fund should be three to six months’ worth of expenses.

Automate savings. Set up automatic transfers to your savings account each payday. This way, you’ll save without even thinking about it, helping to build your savings effortlessly.
Start at one month: If three to six months feels out of reach, aim for one month of essential expenses, then ladder up.
Extra income: If possible, redirect tax refunds, overtime, or side‑gig income. If you work and receive VA disability compensation, consider directing the disability compensation to your savings account.

"Conventional financial guidance recommends saving three to six months’ worth of essential expenses in your emergency fund. However, this goal can feel overwhelming, especially if you are living paycheck to paycheck," Holmes said. "To determine a realistic amount to set aside, start by reviewing your monthly spending plan or budget to identify what remains after covering necessary expenses."

Know Your Goals

Decide what you’re saving money for and how much you want to save. Maybe you want a stronger emergency fund or you’re working toward a major purchase. Being clear and specific about your goals will ultimately benefit you.

Set time frames for goals: Short-term (within a year) — pay off a credit card or build an emergency fund; mid-term (1–3 years) — save for a reliable vehicle or professional training; long-term (3-plus years) — plan for a home purchase or retirement.
Make goals specific: For example, “Save $1,800 for three months of living expenses by July 31.”
Set attainable milestones: Break big goals into smaller checkpoints — 25%, 50%, and 75% completion — and celebrate your success along the way.

"Set a savings amount that is both reasonable and sustainable for your situation, whether it’s $25 or $200 per month, and commit to contributing consistently," Holmes said. "If you find yourself regularly withdrawing from the fund to cover routine expenses, it may be time to reassess your budget or adjust your savings target."

Understand Your Deductibles

To use your insurance in the case of a car accident, storm, or medical procedure, you will first have to pay your deductible before insurance kicks in.

Know the numbers: List your auto, homeowners/renters, and health deductibles in one place.
Match to your emergency fund: Aim to keep at least your highest deductible available in cash.
Avoid surprise costs: Clarify coinsurance, copays, and out-of-pocket maximums, especially for planned procedures.

Be Wary of Additional Fees

When you sign up for a bank account or debit or credit card, ensure you read the fine print in your contract. It’s important to understand what you’re signing and to be aware of any potential late or withdrawal fees.

Common fee traps: Overdrafts, out‑of‑network ATM fees, cash‑advance fees, late payments, foreign transaction fees.
Negotiate down: Many banks will reverse a first‑time fee if you call promptly.
Prevent with alerts: Turn on due‑date reminders and low‑balance notifications.

More Helpful Tips

Here are some additional financial planning tips to consider:

Review subscriptions regularly. Periodically review your subscriptions and memberships to ensure you only pay for services you actively use and value. Cancel any unnecessary or redundant subscriptions.
Monitor your credit. Regularly check your credit report for errors and stay aware of your credit score. Good credit can help you secure better interest rates and loan terms.
Utilize your benefits. The Department of Veterans Affairs (VA) often assists veterans with mitigating debt and managing finances. Things like VA home loans and VA health care, for example, can help keep costs down. WWP can also help veterans understand and access VA benefits they may qualify for, like VA disability compensation.

Don’t Give Up

Getting your finances in order is like riding a bike. Once you adopt some of these practices into your routine and consistently work on your plan, you’ll feel more confident and in control.

Plateaus happen: If progress stalls, reduce the size of your goals (from $200/month to $75/month). This can help you keep your momentum.
Community support: Be willing to reach out for help. WWP’s Financial Readiness program can help warriors get back on track. Look for no-cost peer support and workshops that are available to veterans.
Track wins: Keep a “financial wins” note — fees avoided, balances reduced, savings milestone hits — as a way to remind yourself you can do this.

Educate Yourself

Knowledge is power, and understanding financial principles can help you make informed decisions. Reach out for assistance. WWP offers financial education and resources for warriors and their family members, including educational classes or workshops to help prepare budgets and achieve financial goals.

Build a learning path: Start with the basics — budgeting, credit, and debt management — then once your foundation is solid, move on to investing.
Ask questions early: Insurance, taxes, and benefits can be confusing. Seeking guidance before making major decisions can save money.
Use available resources: WWP’s Financial Wellness programs can help veterans navigate and track budgets, update and build resumes, and navigate the VA benefits process. WWP partners, such as USAA, also offer support to service members and veterans to help improve their financial literacy and achieve their financial goals.

"Financial education equips you with the knowledge and skills essential for achieving long-term stability and independence," Holmes said. "By understanding the options available, you are empowered to make informed financial decisions and develop plans tailored to your unique circumstances.

"The more informed you are, the greater your confidence — and with confidence comes reduced stress and a stronger sense of independence. Financial education simplifies the process of managing personal finances, enabling you to take control and build a secure financial future."

Moving Forward with Confidence

Financial challenges can feel overwhelming, but they don’t have to define your future. By taking small, intentional steps, you can regain control and reduce stress.

WWP offers resources, education, and support to help veterans and their families build financial resilience. According to the Warrior Survey, 73% of warriors who participated in WWP programs in fiscal year 2024 reported that their quality of life improved because of WWP.

Whether it’s learning to prioritize expenses, establishing an emergency fund, or accessing VA benefits, these tools are here to empower you.

It is achievable to get your finances under control, and help is available.

"Remember, you don’t have to navigate this process alone," Holmes said. "Reach out to Wounded Warrior Project for guidance and support in creating a personalized plan that works for you."

*Warrior Survey, Longitudinal: Wave 3 (conducted May 25-Aug.1, 2023)

Learn more about WWP’s Financial Readiness program.

Contact: Paris Moulden, Public Relations, pmoulden@woundedwarriorproject.org, 904.570.7910

About Wounded Warrior Project

Wounded Warrior Project is our nation’s leading veteran services organization, focused on the total well-being of post-9/11 wounded, ill, or injured veterans. Our programs, advocacy, and awareness efforts help warriors thrive, provide essential lifelines to families and caregivers, and prevent veteran suicides. Learn more about Wounded Warrior Project.

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