Homelessness and Money Mismanagement in Iraq and Afghanistan Veterans

Abstract: This study examined the link between money mismanagement and subsequent homelessness among veterans. Veterans were randomly selected from a roster of all US military service members in Operation Iraqi Freedom or Operation Enduring Freedom who left active duty from the Reserves/National Guard. Thirty percent reported money mismanagement (e.g., bouncing or forging a check, going over one’s credit limit, falling victim to a money scam in the past year). Analysis revealed money mismanagement was associated with homelessness in the next year, as were arrest history, mental health diagnosis and loss of income. The authors conclude money mismanagement, reported by a substantial number of veterans, was related to a higher rate of subsequent homelessness. The findings have implications for policymakers and clinicians, suggesting that financial education programs offered by the US Departments of Defense and Veterans Affairs may be targeted to effectively address veteran homelessness.