Military service members were stronger financially at the end of 2023 than they were before the COVID-19 pandemic, even as inflation chipped away at household finances, according to the first Military Financial Wellbeing Index released by USAA Federal Savings Bank.
Service members saw an average 19% increase in their savings balances and a 23% increase in checking balances between 2019 and 2023, according to the survey. Despite the growth, the typical checking and savings balances saw year-over-year declines of 12% and 10% last year, a potential sign of inflationary pressures. Gen Z service members saw an 18% increase in savings account balances, compared to just 6% for millennials. Gen Z checking balances also increased by 18%
The average daily credit card balance for military members was 23% lower at the end of 2023 than 2019, according to USAA. Half of military members paid their credit card bills on time and in full in 2023 versus 40% five years prior. In 2023, 37% of military members carried a revolving balance, down from 45% in 2019. For active-duty service members, credit card spending increased between 2023 and 2019 across some major essentials: grocery/pharmacy (32%), fuel (36%) and utilities (13%).
