The Department of Veteran Affairs (DVA) announced new VA benefits payments of more than $3,000 to all veterans in the US. These VA benefits will also include some extra benefits, as the federal agency plans to modify monthly payment benefits to include the 3.2% increase from the cost of living adjustment (COLA).
All veterans who meet the program eligibility requirements will benefit from this increase, including those who developed chronic illnesses or cancer as a result of exposure to chemicals. The purpose of adding a cost-of-living adjustment (COLA) to VA benefits is to level the playing field between these benefits and Social Security payments. However, veterans should be advised that their projections for the COLA increase in the upcoming year might be the lowest in recent memory.
Veterans with a service-related disability and a discharge classified as “other than dishonorable” are eligible to receive tax-free monthly benefits known as VA disability pay. The sum can vary from $1,650 to more than $3,600. Additionally, if you qualify, you may be able to collect Dependency and Indemnity Compensation (DIC), a tax-free monthly benefit available to some surviving veterans’ families.
VA benefits payment dates are confirmed for 2024
The Department of Veterans Affairs (DVA) releases a yearly schedule so veterans can plan their financial budget according to these dates. Here is the VA disability payment schedule for 2024:
- March: Apr. 1 (Monday)
- April: May 1 (Wednesday)
- May: May 31 (Friday)
- June: July 1 (Monday)
- July: Aug. 1 (Thursday)
- August: Aug. 30 (Friday)
- September: Oct. 1 (Tuesday)
- October: Nov. 1 (Friday)
- November: Nov. 29 (Friday)
- December: Dec. 31 (Tuesday)
What should veterans understand about their finances?
According to certain research, veterans are more likely to experience financial difficulties when they return to civilian life, and they are twice as likely as ordinary citizens to become victims of financial fraud. A 2017 AARP study revealed that veterans are prone to being victims of financial fraud, with 80% reporting scams. The CFPB received over 34,000 complaints from veterans and their families.
Financial stress can be especially difficult for veterans moving into civilian life. For example, a 2016 poll of participants in the National Foundation for Credit Counseling’s (NFCC) Sharpen Your Financial Focus® program revealed that military veterans had higher auto, credit card, and mortgage debt than other participants. Debt is simply one of a veteran’s new financial realities.
Alex Beene, a financial literacy instructor for the state of Tennessee, told Newsweek that the financial reality that many veterans face, from higher medical costs to unique dietary requirements, has only gotten harder as a result of inflation. Even if these raises will not completely offset all of the increased costs they are experiencing, they will undoubtedly lessen the blow.
Therefore, understanding basic financial concepts can help veterans secure their financial future. Everyone starts from the same financial base, but not everything is immediately apparent. So, here are some basic financial concepts to get you started:
- The importance of insurance: It’s crucial to secure adequate health insurance after leaving active service. Contact the VA for enrollment, consider longer-term health insurance, convert SGLI to VGLI, or have private or group life insurance coverage as a civilian.
- Building a good credit score: Use low-interest credit cards and pay bills on time. This will help build a good credit score, which can help you secure lower interest rates on loans and mortgages.
- Having an emergency fund: Covering three months of living expenses with minimal interest will provide financial stability for your needs.
- Creating a budget: List essential expenses like housing, food, clothes, utilities, insurance, phone, Internet, and transportation, and nonessential expenses like entertainment and travel.
- Saving…
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