Perhaps one of the most challenging life skills facing veterans in early recovery is that of effective money management. Many veterans coming through treatment have never had a bank account, have used payroll check cashing services and paid their bills, if they paid them, with money orders or cash.
Working with veterans in small groups and then with individual veterans and their mentors, the Foundation assists veterans with understanding and applying the basics of everyday money management.
The process may begin while the veterans are still in treatment and living at the VA. At that time, their expenses are usually limited to cell phones, clothing, some transportation, entertainment and meals outside the VA. Also, once they are employed, veterans often purchase TVs or stereos while still at the VA.
Many do not give much thought about how they will acquire a vehicle or how much it will cost them to live once they leave the VA. Some have never had a place of their own and still others have, more or less, lived in a series of institutions for years.
Our approach is not one of esoteric financial planning involving Roth IRAs and asset allocation models that are meaningless, but rather, one that focuses on everyday issues and pitfalls.
The process begins with identifying any existing financial obligations that the veteran may have. i.e. alimony, child support, etc. Next, we calculate the veteran’s projected monthly income based on current employment. Then, working with both the veteran and his mentor, a “Pre-discharge Budget Plan” is developed. This Plan covers the period until the veteran is discharged from treatment (approximately 5 months). Among other things, it addresses:
¨ Existing financial obligations
¨ Saving for a vehicle down-payment
¨ Auto insurance
¨ Weekly gas expense
¨ Saving for substantially increased housing and living expenses post-discharge
This “Pre-discharge Budget” will be reviewed with the veteran on a periodic basis by both his VA counselors and his “Touchstone” mentor. As circumstances dictate, adjustments may be made to the budget. How well a veteran adheres to the budget will be one of the considerations when the veteran seeks to participate in additional Foundation programs.
As veterans progress toward their discharge from treatment, a more comprehensive “Post-discharge Budget Plan” will be developed utilizing a similar process. However, this budget includes food, rent and, where it applies, cable, water, electric, heat, etc. This budget covers 12 months post-discharge and will be reviewed periodically by the veteran and his mentor.