Personal financial non-readiness: how big of a problem is this in military units?

CPT Aaron Kletzing, many Soldiers I talk to are living in the moment and often make impulse buys without much consideration of what they want versus what they need! The wants often get them into trouble. I've developed a great relationship with our financial advisor in the local ACS and send him 4 to 5 clients per week. In fact, we talk so often, he recognizes my phone number when I call him (our IG knows my number when I call them as well - they are another great leadership resource!).....and I make sure to call him with the Soldier there, he gives an appointment time and then confirms with me that the Soldier makes it.

I went to the barracks today to check the laundry rooms and make sure the CQs had everything they need, I checked the staff duty on the way out and there was a Soldier at the Staff Duty desk that was very excited - he asked me to go with him to look at a truck for sale. Here's the basics of the conversation:

CSM: What kind of truck is it?

PFC: CSM, its a new Ford, the one that has the Mustang GT engine and with all the options it is only $38,000 - "it is a great deal CSM!"

CSM: Do you really need a new truck, I thought you were separated from your spouse and facing a divorce?

PFC: CSM, I can afford it, my promotion is effective at the middle of next month so my pay raise can help with the payment.

CSM: Have you checked with your insurance company and have you check the fuel efficiency of the vehicle? Do you really need a $38K truck, could you get by with a very nice used truck for about $5,000?

PFC: I really want this truck, will you go on a test ride with me?

CSM: you make it make sense to me why you should buy a $38,000 truck and I will go to the dealership with you.....no reply from the Soldier.

So, I went upstairs, made some phone calls and the Soldier came up and thanked me - he looked on a site called bookoo and found a used truck (for $11,000)!

When I was a 1SG at Fort Polk, one of my Soldiers wanted a loan on a Saturn that had more money in the rims than the car was worth & also had more money in the stereo than the car was worth....he was trying to buy a $3,000 car for $10,000! When the finance company called me for employment verification, I immediately asked them a question - how much is the interest....17.9%....so I told the finance company "this Soldier has been in trouble, we do not know how much longer he will be in the unit".....we were already planning on moving him to the HHC so it was not a lie....they denied his loan application! He was furious for about 6 months, when I was about to PCS, he found me and thanked me for "not allowing him to make the worst purchase of his life".

In the day, we weren't allowed to buy a vehicle until we were an E-4 (Germany, 1990). We often get service members who have no idea how t take care of themselves. They sometimes come from homes where they never had two dimes to rub together, or had to surrender their pay to help the family. Now, those 2 paychecks a month seem like all the money in the world. Now add a few measures of immaturity and a several horse power of foolish pride, and that brand used Yugo with the spinny rims starts looking like the solution to everything. As leaders, we have to act as pesty parents at times. It's a lot easier to make sure young people get some sound financial advice and knowledge of budget planning before they become problem children for us later.

I think part of the issue is that Soldiers can be put in a tough place if they are not smart in their relationships. I've seen others, and personally had in one instance, put into situations where they were left on the hook for things they had no control over or knowledge of. Most companies realize that the military is going to force a Soldier to pay it, even if it legitimately isn't theirs to own.

In addition, Soldiers themselves tend to be stupid with their money, and get little education on how to properly budget or manage their affairs until it's too late. I've never understood why so many financial readiness classes spend the majority of time on long term investments. I agree that they're a great thing to utilize, but if a Soldier can't even balance their checkbook, how on earth will they manage to invest wisely?