First Command Reports: Military Families Plan to Save, Pay Bills and Reduce Debt with Warrior Dividend

FORT WORTH, Texas--(BUSINESS WIRE)--The recent Warrior Dividend is helping military families strengthen their financial security by paying bills, saving and reducing debt, according to new research from First Command Financial Services.

"When military families approach windfalls with a plan, even modest payments can make a meaningful difference in long-term financial readiness."

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The First Command Financial Behaviors Index reveals that many military families are directing the tax-free $1,776 payment they received in December toward essential financial priorities rather than discretionary spending.

How military service members plan to use the Warrior Dividend

When asked how they plan to use the payment, respondents most frequently selected practical financial uses. Top uses include:

• Pay monthly bills — 34%
• Put funds into general savings — 31%
• Pay down debt — 30%
• Build up an emergency fund — 23%
• Invest or open an investment account — 20%
• Prepay major bills such as insurance or medical expenses — 20%
• College savings contributions — 17%

Plans for discretionary spending include:

• Home improvements — 20%
• Vacation spending — 18%
• Dining out — 14%
• Consumer purchases — 13%

These responses indicate that most military households view the payment as an opportunity to reinforce their financial foundation rather than increase everyday spending.

Awareness of the Warrior Dividend among service members

The survey also found that awareness of the payment remains relatively limited. After the payment hit service member accounts:

• 54% of military members say they are aware of the Warrior Dividend.
• 27% of those aware know the exact amount they expect to receive.

This suggests that many service members may still be seeking information about the payment and how it will affect their household finances.

Who service members consult about financial decisions

Military families often seek advice before making decisions about additional income.

Respondents said they are most likely to consult:

• Spouse — 40%
• Financial advisor or planner — 26%
• Family members — 17%
• Friends — 8%
• Fellow service members — 7%

The findings reinforce the importance of both family discussions and professional financial guidance when service members receive unexpected or supplemental income.

Financial planning opportunity for military families

Financial professionals say one-time payments like the Warrior Dividend can be used strategically to strengthen household finances.

Common strategies include:

• Building or replenishing emergency savings
• Paying down high-interest debt
• Investing for long-term goals
• Covering major upcoming expenses

Professional Perspective

“Military families consistently prioritize financial stability when they receive additional income,” said First Command President/CEO Mark Steffe. “Our survey shows service members are focused on saving, paying down debt and covering monthly expenses—choices that can strengthen long-term financial resilience. When military families approach windfalls with a plan, even modest payments can make a meaningful difference in long-term financial readiness.”

Frequently Asked Questions About the Warrior Dividend

What is the Warrior Dividend?

The Warrior Dividend is a one-time, tax-free payment distributed to eligible military service members in December. The payment is intended to provide additional financial support to members of the U.S. Armed Forces and their families.

How much was the Warrior Dividend payment?

Eligible service members received a $1,776 tax-free payment as part of the Warrior Dividend distribution.

How are military families planning to use the Warrior Dividend?

According to the First Command Financial Behaviors Index®, many service members plan to use the funds for essential financial priorities, including:

• Paying monthly bills
• Adding to general savings
• Paying down debt
• Building emergency savings
• Investing or opening an investment account
• Prepaying major expenses such as insurance or medical bills

Some families also plan to allocate a portion of the payment to discretionary spending such as home improvements, vacations, dining out or consumer purchases.

How aware are service members of the Warrior Dividend?

The survey found that 54% of military members say they are aware of the Warrior Dividend, while 27% of those who are aware know the exact amount they expect to receive.

Who do military families consult about financial decisions like this payment?

Military families most often discuss financial decisions with their spouse, but many also seek guidance from financial professionals and family members. The survey found service members are most likely to consult:

• Spouse
• Financial advisor or planner
• Family members
• Friends
• Fellow service members

What are smart ways to use a one-time payment like the Warrior Dividend?

Financial professionals often recommend prioritizing strategies that strengthen long-term financial stability, such as:

• Building or replenishing an emergency fund
• Paying down high-interest debt
• Investing for long-term financial goals
• Covering major upcoming expenses

Using windfalls strategically can help military families improve their financial readiness and resilience.

Where does the data in this survey come from?

The findings come from custom questions included in the First Command Financial Behaviors Index®, a monthly survey conducted by Sentient Decision Science that tracks financial attitudes and behaviors among American consumers, including military households.

©2026 First Command Financial Services, Inc. is the parent company of First Command Brokerage Services, Inc. (Member SIPC, FINRA), First Command Advisory Services, Inc., First Command Insurance Services, Inc. and First Command Bank. Securities products and brokerage services are provided by First Command Brokerage Services, Inc., a broker-dealer. Financial planning and investment advisory services are provided by First Command Advisory Services, Inc., an investment adviser. Insurance products and services are provided by First Command Insurance Services, Inc. Banking products and services are provided by First Command Bank (Member FDIC).

Investment and insurance products are not deposits, are not insured by the FDIC, and may lose value. A financial plan, by itself, cannot assure that retirement or other financial goals will be met. First Command Financial Services, Inc. and its related entities are not affiliated with, authorized to sell or represent on behalf of or otherwise endorsed by any federal employee benefit program, the U.S. government, the U.S. Armed Forces or any other third-party mentioned on this site.

The First Command Educational Foundation is a separate 501(c)(3) public charity and is not affiliated with First Command Financial Services, Inc., or any of its affiliated entities.

About the First Command Financial Behaviors Index®

Compiled by Sentient Decision Science, Inc., the First Command Financial Behaviors Index® assesses trends among the American public’s financial behaviors, attitudes and intentions through a monthly survey of approximately 530 U.S. consumers aged 25 to 70 with annual household incomes of at least $50,000. Results are reported quarterly. The margin of error is +/- 4.3 percent with a 95 percent level of confidence.

About Sentient Decision Science, Inc.

Sentient Decision Science was commissioned by First Command to compile the Financial Behaviors Index®. SDS is a behavioral science and consumer psychology consulting firm with special vertical expertise within the financial services industry. SDS specializes in advanced research methods and statistical analysis of behavioral and attitudinal data.

First Command Financial Services, Inc.