An analysis of the impact of financial factors on the well-being of military officers

Abstract

The purpose of this research study was to survey resident Naval Postgraduate School (NPS) students about various financial factors to determine which factors have the most significant impact on subjective well-being. An online voluntary and anonymous survey was deployed to students about various financial factors, nonfinancial factors, and constraints on resources. This research replicates a previous study conducted primarily with enlisted soldiers. Based on the analysis, having enough net worth to be set for retirement, having emergency savings of $1,000 to $2,000, and having financial knowledge are all statistically significant variables affecting an individual officer’s subjective well-being. Additionally, having over $5,000 of vehicle debt, being separated from a spouse, and having any dependents (excluding a spouse) result in a marginally negative impact on an officer’s subjective well-being. Neither rank nor age were found to have any statistical significance with regard to well-being. The analysis highlights some differences between the mostly enlisted population previously surveyed and the officers at NPS. One difference was that credit card debt has less impact on the subjective well-being of officers at NPS than was found in the previous study. Finally, the analysis provides some recommendations for future personal financial education of military officers.