Preparing financially for PCS season

Preparing financially for PCS season

Erica Johnson | June 20, 2016

We’re in the middle of peak PCS season, and many career military families are packing for their next move. Although Permanent Change of Station (PCS) moves can be stressful, we’ve discovered that the majority of families moving this year are financially ready.

The First Command Financial Behaviors Index® reveals that 86 percent of middle-class military families* who will be making a PCS this summer have budgeted for the costs of their move. With almost half expecting out-of-pocket costs of at least $1,000, and one-out-of-six expecting to spend more than $2,500, these families made smart decisions by planning ahead. Being financially prepared for a PCS is critical to keeping these regular relocations from negatively impacting family finances. Thanks to smart planning, three-out-of-four relocating families surveyed say they feel financially confident this time around.

While service member families benefit from a number of PCS entitlements, they can encounter unexpected and unreimbursed expenses. To keep out-of-pocket expenses to a minimum, do your homework before a PCS. Take advantage of resources that may be available through your installation’s relocation assistance office, transportation office and housing office. Find out which benefits you’re entitled to and determine how much of your expenses they’ll cover. PCS benefits include:
•Advance Basic Allowance, Housing (BAH) — advance on monthly pay for off-base rental housing.
•Dislocation Allowance (DLA) — partial reimbursement for relocation expenses incurred.
•Monetary Allowance in Lieu of Transportation (MALT) — mileage reimbursement when driving to a new station.
•Per Diem Allowance — money to help pay for meals and lodging while traveling.
•Temporary Lodging Expense (TLE) — money to help pay for meals and lodging when temporary housing is required.

Still, many expenses are not covered by government benefits. Prior to your move, make a list of all items associated with your move (terminating a lease, temporary housing, storage, etc.). Write down whether those expenses will be covered by your service branch or you’ll have to pay out of pocket, and figure the difference.

*Commissioned officers and senior NCOs in pay grades E-5 and above with household incomes of at least $50,000

This article has appeared previously in a First Command publication.