Veterans and Money: Questions and Answers

Making any career change could have financial challenges. For veterans re-entering civilian life, these challenges can go beyond the ordinary. After leaving the military, veterans are faced with a new financial reality—from navigating expenses such as housing and transportation to budgeting and saving for retirement for the first time.

My dad was in the military. I've seen him deal with some veterans' issues, especially around benefits. Because I work in the Schwab Monterey branch near a military base, I also work with a lot of veterans. I see firsthand how setting yourself up financially as you return to civilian life can have unique challenges.

To get insights on how to help, I sat down with veteran and Schwab Denver Branch Manager Casey Zeringue to talk about his experience transitioning from military service. Casey spent four years as a Marine serving in a reconnaissance unit where he trained Special Forces teams, deployed to the Middle East and Africa, and jumped from planes as part of a HALO (High Altitude, Low Opening) team. Mentoring veterans is now a new mission for Casey. I asked him to share his ideas on what veterans can do to help protect and grow their finances.

Caylie: What was it like for you when you re-entered civilian life, and were there financial surprises you faced?

Casey: I joined the Marine Corps right after high school. So when I got out, there were lots of surprises. First, was how to earn a paycheck. In the military, you're used to having everything taken care of for you and always getting that Friday morning paycheck. Suddenly you don't know where your next paycheck comes from and the biggest shock is that you have to create a structure for yourself. You have to pay rent, bills, and get a car loan. I didn't know what to do.

Luckily the military teaches you discipline. For better or worse, you learn survival skills. You go off to war, do a couple of tours, and most people don't want to come back and rely on their parents. I wanted to do it on my own. So, to bring in money at first, I took a job as a bartender to get started.

Then my dad asked me what my plans for the future were. I knew I wanted to do things differently, so I forced myself to make a change and went to community college where I worked on prerequisites to get into business school. It was a mindset shift.

As a veteran you think you're different from the other college students. The biggest hurdle for some veterans, is the mindset difference. You think you are different from a 19 year old college student, but really you are just the same. That's why some veterans don't use the GI bill to go to school. But you can use your military discipline to get through college—that's what I did. It helped me create the structure I needed to transition and learn how to handle the new financial responsibilities.

[Since 1944, the GI Bill has helped qualifying Veterans get money to cover all or some of the costs for school or training. Get more information here.]

Caylie: That sounds like an important turning point. It shows how veterans can use skills they learned in the military, including discipline, to succeed in civilian life. Based on your experience, what's one of the first things a new veteran should focus on in terms of managing their money in civilian life?

Casey: Longevity. I spent seven years in combat zones, so I wasn't sure I would make it to 30. But when you get out and realize you may live another 50 years, you begin to understand that what you do financially today has consequences down the road.

Caylie: Right. Life is too long not to plan for it all. And financial actions today can have consequences, both short and long term, both good and bad. What can veterans do to get a handle on their finances?

Casey: Start with the basics, like creating and sticking to a spending plan. Understand the difference between your needs and wants. Learn to make choices so you don't get overwhelmed by debt. My dad and I talked about an economic principle—for every choice, there's a sacrifice—that's important to understand.

Caylie: It sounds like having a support system was a key element in helping you take ownership of your finances in civilian life. A support system can be more than just family. There are VA resources, friends, or even counselors.

Casey: Absolutely. A support system is crucial. The military instills in you the idea that you don't ask for help. Vets think they've done the hard stuff in the military, so they can handle it themselves, but you can't do it by yourself. We all need a support system. Even the 3-star generals.

Caylie: Let's talk about debt. Military households have a high rate of missed credit card payments, according to a 2024 survey by the National Foundation of Credit Counseling. What would you tell veterans about using credit?

Casey: It can be easy to misuse credit for active-duty military, veterans, and everyday Americans. In the military, you don't make much money, so some people just use a credit card. But sometimes they just don't think about the 20% interest rate, or how it adds up. Some active-military folks on combat missions, which could be life and death situations, just pay the minimum and don't worry about the consequences. Or, if they miss a payment, they think 'what do I care? I'm in combat right now.' It's a mindset. But these things follow you.

When I got out of the military, I bought a mountain bike on credit, missed some payments, and it affected my credit score. I had to fight to correct that and it took time. And there are other consequences. For instance, if you have bad credit, you can't qualify for a home loan, even a VA loan, which has some of the lowest credit requirements.

Life outside the military is different. You have to be financially responsible and understand how your credit decisions today could affect you later. I tell new veterans they have to build a good credit history. To do that, use credit but use it wisely. Keep a low credit card balance and don't charge more than you can pay off monthly.

I help them understand the difference between good debt and bad debt. Loans like a mortgage are typically considered good debt while carrying a high-interest credit card balance is typically considered bad debt. The key is to know the difference and pay your bills on time to help you build your credit score.

Caylie: Isn't having an emergency fund one of the major ways to stay out of debt?

Casey: When I got out of the military, I had no savings. In the military, when you have money, you spend it. Many Americans, not just veterans, don't know about emergency savings. Now, when my veteran friends call me for advice, even those who are in their 40s, I ask them if they could pay their bills for six months if they lost their job. If they say no, I encourage them to create an emergency fund first, because the military isn't there to take care of it for you.

The ideal is to have enough cash to cover three-to-six months of essential expenses. Keep that money in an accessible savings account. It won't earn much interest, but it will be there when needed so you don't have to pull out a credit card.

Caylie: Veterans have retirement benefits, but are they enough?

Casey: If you've served for 20 years or more, you're entitled to retirement benefits. But for some, their benefits may not be enough. Pension levels depend on pay level and rank. Let's say you're enlisted, not an officer, and you retire from active duty after 20 years. You're now in your 40s and your benefit is about $2,000 a month. Where in the United States could that be enough to cover all your financial needs?

Some veterans may have contributed to the Thrift Savings Plan (TSP), which is similar to a 401(k), but the retirement benefits may not be enough. You may have to get another job. And you may have to save and invest now.

Caylie: Talk more about why saving and investing is so important and how people can get started?

Casey: In my 20s, if someone told me to invest $50 a week—totaling $200 a month—my mind would have been blown. Imagine. If I'd invested that $200 a month for 20 years at a 6% annual return, now in my 40s, I'd have over $90,000. So I tell veterans how important it is to start investing early. Veterans might say they can't find the extra money to get started. Use your military discipline. For every choice, there's a sacrifice.

But just like a lot of civilians, many veterans don't understand basic investing principles or the concept of compounding. It's one of my missions to help them. Fortunately, there are resources specifically designed to help veterans learn and get the financial information they need.

Caylie: Veterans are heroes for America, and they want to be heroes for their families as well. So, making sure they're fully aware of the help and benefits available to them is important. Lastly, what words of encouragement do you have for today's veterans when it comes to their finances?

Casey: For veterans who want information about these topics, there's a lot of free help available. You just have to ask for it. There are transition services, health and home loan services, the GI bill, and financial literacy advice.

My advice to veterans is to access all free information and resources. Take advantage of the financial education help that's available. Financial freedom means a less stressful life. Start to save and invest early because it's hard to start later, to catch up. If someone had told me that at age 22, I would've been grateful.

Caylie: Thank you, Casey. Thank you for your military service—and for the financial education you're providing veterans today. At the end of the day, we thank every single person in active or inactive military service and wish them success as they reintegrate into civilian life. To me, our veterans are heroes who deserve all the help and support they can get.