44.3% of Minnesota Service members struggle with expenses

Note: the study referenced in this article was conducted by Upgraded Points. Their website is https://upgradedpoints.com.

The financial challenges facing U.S. military households are a significant concern throughout the year. Holidays such as Memorial Day, Armed Forces Day, or Veterans Day highlight the ongoing struggles that service members face, particularly amid rising costs for everyday essentials. Recent data from the U.S. Census Bureau's Household Pulse Survey shows a troubling trend: Military personnel and their families are finding it more difficult to cover basic household expenses such as food, housing, and transportation than the average American.

This analysis examines how service members are faring in today's economy compared to civilian households, highlighting the states where military families report the greatest challenges in managing their finances.

Financial Challenges Facing Service Members

According to recent Household Pulse Survey data, members of the armed services are experiencing financial strain at higher rates than the general U.S. population. Over 40% of service members report difficulty covering their usual household expenses, compared to 36.6% of all U.S. adults.

The data also shows heightened anxiety among service members regarding rising prices. Nearly 80% of military personnel express stress about recent price increases, significantly higher than the 71.8% of all U.S. adults who share similar feelings. Furthermore, 81.8% of service members are concerned about future price hikes, reflecting widespread uncertainty about inflation's long-term impact on household budgets.

States Where Service Members Struggle To Cover Costs

Across the U.S., the financial burden on service members varies significantly from state to state, primarily influenced by local economic conditions. According to the most recent data, Utah leads with 53.7% of service members reporting difficulty covering basic household expenses, closely followed by Louisiana (52.9%) and Alaska (52.8%). Other states where over half of service members are struggling include Indiana (52.0%), Tennessee (51.2%), New York (50.8%), and Florida (50.3%).

A key issue service members frequently raise is that their Basic Allowance for Housing (BAH) has not kept pace with the rapidly rising cost of housing. In states where service members face the greatest financial difficulties, such as Utah, Indiana, Tennessee, and Florida, home price increases have far exceeded the national average, exacerbating the strain on household budgets.

Another critical factor affecting military families is the employment challenges military spouses face. According to the Department of Defense, the military spouse unemployment rate was 21% in 2023, compared to a national rate of 4.3% that year. Many military bases are located in rural or remote areas, limiting job opportunities for spouses, particularly in specialized fields. Additionally, frequent relocations make it difficult for spouses to sustain long-term careers, especially for those in professions requiring state-specific occupational licenses that can be difficult to transfer.

Service members are also more likely to report financial struggles in states with higher-than-average unemployment rates, such as Louisiana, Alaska, and New York. Conversely, the state unemployment rate is below average in 9 of the 10 states where service members report the least financial difficulty. This suggests that strong local employment opportunities, particularly for spouses, significantly ease the financial burden on military households.

Here is a summary of the data for Minnesota:

• Share of service members finding it difficult to cover expenses: 44.3%

• Share of service members stressed about price increases: 74.8%

• Share of service members concerned about future price increases: 78.5%

• Home price growth (2019–2024): 31.6%

• Unemployment rate (2023): 3.0%

For reference, here are the statistics for the entire United States:

• Share of service members finding it difficult to cover expenses: 40.2%

• Share of service members stressed about price increases: 79.8%

• Share of service members concerned about future price increases: 81.8%

• Home price growth (2019–2024): 48.4%

• Unemployment rate (2023): 4.3%