This guest blog is written by Carlos Cervantes, a 25-year Air Force Veteran from San Antonio, Texas and a former Skillbridge Intern with Soldiers’ Angels. Carlos shares his firsthand experiences on how inflation is increasingly affecting military Veterans, shedding light on the financial challenges many face post-service. With a unique perspective rooted in real-life situations, he advocates for greater support and appreciation for Veterans, emphasizing the critical need for continued care and volunteerism.

Inflation, the sustained increase in the general price level of goods and services, has far-reaching effects on all Americans. However, military families face unique financial challenges that make them particularly vulnerable to the consequences of inflation. These challenges stem from fixed income mandates, frequent relocations, and the rising costs of essential goods and services. 

To be more specific, inflation significantly impacts military families by simply making it harder for them to afford basic necessities like food, housing, transportation, and childcare due to rising costs in these areas, often leaving them struggling to maintain their standard of living, especially considering that military pay may not keep pace with inflation increases; this can lead to financial stress, difficulty paying bills, and even groceries in most cases.   

This message aims to raise awareness about the financial challenges military families face and to bolster more support for Veterans. Soldiers’ Angels organization provides a means to volunteerism and monetary contributions to help military families and Veterans worldwide. 

Let’s discuss some of the major effects of inflation: 

Rising Housing Costs

One of the most immediate impacts of inflation on military families is the rising cost of living.  Military housing allowances may not keep up with rising rent prices in high-demand areas, making it difficult to find affordable housing.  Housing, groceries, fuel, and healthcare—essential components of any household budget—have seen significant price increases in recent years. 

The military determines the BAH amount based on rank and dependent status, which varies by zip code. However, it does not always align with local rental prices, particularly for lower ranks. While higher-ranking service members with dependents receive a larger allowance, it typically only covers the rent for most two-bedroom apartments. As a result, many junior service members must pay out of pocket for rent that exceeds their BAH. 

Similarly, the rising cost of groceries and fuel disproportionately affects military families who may already operate on tight budgets. 

Increased Costs for Food and Goods

Rising food prices impacts military families by making it to afford healthy meals, especially when living on a single income. Similar to housing, servicemembers receive Basic Allowance for Subsistence (BAS) to help cover food expenses, but this allowance hasn’t kept pace with the increasing cost of groceries. As eating out becomes less affordable, many families choose to buy food from the grocery store and cook at home. While store-bought groceries are still expensive, they are generally more affordable than dining out. The days of the McDonald’s dollar menu are long gone, and a meal at a fast-food restaurant for a family of four now costs over $35 on average. Inflation forces families to pay inflated prices for essentials like milk, meat, and other food items.

Other goods and basic essentials have more than doubled with inflation such as deodorant, which now costs more than $12 on average opposed to a few years ago it was $4.00 on average. The rising cost of baby formula, now averaging $50, is making it even more difficult for low-income families to survive on one income with a newborn.

Let’s talk Shrinkflation, the phenomenon where the size or quantity of a product is reduced, but the price remains the same, or even increases. This subtle price increase often goes unnoticed by consumers because they don’t immediately realize the product’s size has been reduced. For example, a bottle of lotion that is now only 8 ounces—the size of a Coke can—costs a whopping $14.97.

Transportation Expenses

Rising gas prices can have a major impact on transportation costs for military families, especially those who need to commute long distances. For example, many military families live in areas like San Antonio, where daily commutes can be lengthy. Personally, I drove a 72-mile round trip to work every day, which cost me around $600 a month in gas. As fuel prices continue to climb, military families face a significant financial burden from these expenses who rely on their vehicles for daily commuting. 

Additionally, as families drive longer distances to manage their daily commutes, they are putting more miles on their vehicles, which increases the likelihood of needing maintenance like oil changes, tire rotations, and brake services. This combination of higher fuel costs and increased vehicle use can result in higher transportation and maintenance costs for military families.

Childcare and Education Costs

In addition, inflation has significantly impacted education costs, making it harder for military families to afford school supplies, extracurricular activities, and tuition for private or specialized schools—especially if nearby public schools do not meet their needs. 

Childcare, a necessity for many military families, has become an increasing financial burden. Rising costs for daycare and after-school programs have left families with fewer affordable options. While military installations offer subsidized childcare services, these are often in high demand, and families living off-base must rely on civilian providers. 

To manage the rising cost of living, most households require both partners to work. However, much of the secondary income is consumed by the soaring cost of childcare. In Texas, the minimum wage as of 2024 is $7.25 per hour, meaning a spouse working 40 hours a week would earn only $290 before taxes. This is often not enough to cover the $200 to $400 weekly daycare fee per child. Without qualifications for a higher-paying job, it may make more financial sense for the spouse to stay home with the children rather than work, embracing the financial struggle. 

Limited Ability to Adjust Pay

Military pay, while competitive compared to some civilian careers, often fails to keep pace with inflation.  Unlike civilian jobs, military pay is set by law and may not readily reflect inflation increases, making it harder for families to cope with rising costs.  The annual pay raises determined by Congress are based on the Employment Cost Index (ECI) and may not fully address the real-time economic pressures of inflation. For example, if inflation outpaces the annual pay increase, the purchasing power of military families erodes, making it harder to afford basic necessities. 

Additionally, junior enlisted service members and their families are particularly affected. Many of these families qualify for food assistance programs such as the Supplemental Nutrition Assistance Program (SNAP), highlighting how inflation worsens the financial strain.

Frequent Relocation

Military families often face frequent moves to new duty stations, which can disrupt employment opportunities for spouses and further exacerbate financial challenges. 

Frequent relocations, or Permanent Change of Station (PCS) moves, frequently define military life. While the Department of Defense (DoD) provides allowances to cover PCS-related expenses, these allowances often fall short during periods of high inflation. The costs of moving, securing new housing, and adapting to different local economies can overwhelm families. 

Inflation makes these transitions even more challenging, as families may face higher out-of-pocket costs for temporary lodging, transportation, and setting up new households. For instance, rising fuel prices during a PCS move can greatly increase travel expenses. Some overseas locations restrict households to shipping only one privately owned vehicle (POV), which forces families to purchase a second vehicle upon arrival.

Conclusion

In conclusion, while the Department of Defense and policymakers have taken steps to support military families, inflation has significantly strained military families financially in today’s evolving economic environment. Supporting military families is not only a moral obligation but also a strategic necessity, as their well-being directly affects the readiness and effectiveness of our armed forces. If you are a military family and deeply impacted by inflation and want to learn more about ways that Soldiers’ Angels might be able to help, visit our Get Support page.

Here at Soldiers’ Angels, we want to encourage you to learn more about our mission and explore ways you can make a meaningful impact, whether through volunteering or making a monetary donation. Your support will help us provide vital assistance to military families during these incredibly challenging times.  Visit soldiersangels.org to learn more or stay connected with us on our official Facebook page.

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