Socio-demographic differences in financial strain and satisfaction in the Canadian Armed Forces

Abstract

Introduction: This study examines socio-demographic differences in financial strain and financial satisfaction. The life-cycle model of consumption and savings suggests that individuals make less money when they have the most financial responsibilities. It was expected that socio-demographic factors would predict financial strain and satisfaction. Methods: Results from a stratified random sample ( N = 1, 887) of Regular Force members in the Canadian Armed Forces who completed the Military Member/Family Finance Survey (2017) were examined to test whether age, marital status, dependents, sex, rank, and education predicted financial strain and financial satisfaction, both independently and when controlling for family income, using step-wise regression. Results: Members reported higher financial strain and lower financial satisfaction if they had dependents and lower rank; this held when controlling for family income. Separated individuals reported lower financial satisfaction, and women reported higher financial satisfaction than men, although these differences were not significant when controlling for other socio-demographic variables. Discussion: This study replicates US military findings: lower-ranking individuals experience the most financial strain and lowest financial satisfaction, even when controlling for income, age, marital status, and dependents. When women and men were paid equally, women reported higher financial satisfaction, although this was not significant when controlling for other variables. To understand financial strain, militaries and other organizations should focus on those with less power in the organization and those at more vulnerable points in their life cycle (e.g., those who have dependents). Organizations can provide financial counselling to members, ensuring it is targeted to members’ life stage.