Scripps Howard News Service September 2, 2003
Wartime money a blessing or bane to soldiers
By TARA COPP
WASHINGTON - Troops on extended overseas deployments are finding thousands of extra dollars in their pockets, prime opportunities to get ahead on their bills - or fritter it away on common spending pitfalls.
"They have the ability to make significant money while they're deployed," said Patrick Garrett, a military analyst with GlobalSecurity.org in Washington. "Some of them haven't had to pay taxes, they're getting combat zone tax exclusion."
For instance, a deployed soldier at the specialist rank with four years in the military would make at least $600 a month more than a stateside soldier.
Troops receive $150 a month for serving in a combat zone like Iraq, on top of another $50 to $150 a month for serving in a designated "hardship" zone. In addition, they receive up to $100 a month in family separation pay. From April of this year until October that amount was bumped to $250 a month.
Also, a soldier's entire salary is exempted from federal income tax for the entire month they are in a combat zone, even if they only spend a few days on location.
Higher ranking soldiers and those with more dependents take home even more money.
And if they're disciplined, soldiers can save up their normal base pay too, because there aren't too many opportunities to spend the money. Because of terrorism threats abroad now, many deployed troops don't enjoy the same off-base liberties they've had in the past, so they're not spending money going out to eat or drink. Many of them, if they're not married, will shut down expenses like home phone and cable TV to save even more.
But soldiers still find ways to burn through money.
"It's seems to be the corollary to Parkinson's Law, work expands to fill the time available" Air Force Col. Ken McClellan said. "Expenditures seem to fill at least the paycheck available."
At many of the overseas installations, soldiers improve their quality of life by ordering electronics, books and vitamin supplements online. Each installation has a "base exchange" where troops can buy televisions, air conditioners, DVDs and more, often items that get left behind when they return to the states.
McClellan said he's also run into several soldiers who just don't make credit card payments when they are deployed, damaging credit. When they return home, the large lump payment is just another thing soldiers have to readjust to.
"It's just a terrible truism ... ," McClellan said. "It's very difficult in our society to figure out that the key to wealth is postponed gratification."
Each service has financial planning advice available through family services. The Association of the U.S. Army, for example, screens returning soldiers to detect financial and other relationship stresses.
However, sometimes no matter what the service does, debt will undo a soldier. In the Air Force, McClellan said they'll work with an airman and put him on probation if he or she has been financially undisciplined. If the situation doesn't improve, it eventually can become grounds for discharge because it becomes a security risk.
"With a young troop we'll bring 'em in and say 'bring your checkbook,' " McClellan said. "If you can't pay your debts and you continue to rack up debts, you are viewed as a security risk and a discipline risk. Creditors come calling, and if we can't work a restructuring, you're hotter potato that we can deal with."
© Copyright 2003, Scripps Howard
