FORT WORTH, Texas--(BUSINESS WIRE)--Sequestration and economic worries are prodding America’s career military families to scale back their rest and relaxation plans again this summer.
The First Command Financial Behaviors Index® reveals that 47 percent of middle-class military families (commissioned officers and senior NCOs in pay grades E-6 and above with household incomes of at least $50,000) expect to spend less money this year on summer vacations, continuing a frugal trend that emerged during the economic downturn and has continued with widespread concerns over defense downsizing. Just 22 percent say they will spend more money this year.
The Index reveals that sequestration and economic concerns are affecting the summer vacation plans of military families at a significantly greater rate than in the general population. Popular cost-cutting approaches related to sequestration include:
- Taking shorter vacations (29 percent of military families versus 12 percent of civilian families)
- Staying closer to home (21 percent versus 12 percent)
- Taking “staycations” (21 percent versus 8 percent)
- Cooking rather than eating out (21 percent versus 6 percent)
- Driving rather than flying (20 percent versus 11 percent)
- Visiting family (20 percent versus 7 percent)
Similar savings strategies were reported by military and civilian respondents who are cutting back due to economic concerns. As with sequestration, military households are more likely to respond to economic worries by implementing cost-cutting measures than their general population counterparts.
These frugal plans come at a time when many servicemembers are worried about their family finances. The Index reveals that 70 percent of military respondents feel anxious about cuts to defense spending and more than half are concerned about their job security in the coming months.
“Persistent financial worries are causing some military families to lose confidence in their near-term finances,” said Scott Spiker, CEO of First Command Financial Services, Inc. “Frugality represents a way that these families can take some level of control over these largely uncontrollable issues. Cutting back on vacation spending is a reasonable response to an uncertain financial future.”
About the First Command Financial Behaviors Index®
Compiled by Sentient Decision Science, Inc., the First Command Financial Behaviors Index® assesses trends among the American public’s financial behaviors, attitudes and intentions through a monthly survey of approximately 530 U.S. consumers aged 25 to 70 with annual household incomes of at least $50,000. Results are reported quarterly. The margin of error is +/- 4.3 percent with a 95 percent level of confidence. www.firstcommand.com/research
About Sentient Decision Science, Inc.
Sentient Decision Science was commissioned by First Command to compile the Financial Behaviors Index®. SDS is a behavioral science and consumer psychology consulting firm with special vertical expertise within the financial services industry. SDS specializes in advanced research methods and statistical analysis of behavioral and attitudinal data.
About First Command
First Command Financial Services and its subsidiaries, including First Command Bank and First Command Financial Planning, assist American families in their efforts to build wealth, reduce debt and pursue their lifetime financial goals and dreams—focusing on consumer behavior as the first and most powerful determinant of results. Through knowledgeable advice and coaching of the financial behaviors conducive to success, First Command Financial Advisors have built trustworthy, lasting relationships with hundreds of thousands of client families since 1958.
First Command Financial Services, Inc., is the parent of First Command Financial Planning, Inc. (Member SIPC, FINRA), First Command Insurance Services, Inc. and First Command Bank. Financial planning services and investment products, including securities, are offered by First Command Financial Planning, Inc. Insurance products and services are offered by First Command Insurance Services, Inc., in all states except Montana, where as required by law, insurance products and services are offered by First Command Financial Services, Inc. (a separate Montana domestic corporation). Banking products and services are offered by First Command Bank. In certain states, as required by law, First Command Insurance Services, Inc. does business as a separate domestic corporation. Securities products are not FDIC insured, have no bank guarantee and may lose value. A financial plan, by itself, cannot assure that retirement or other financial goals will be met. First Command Educational Foundation is a 501(c)(3) public charity. It is not affiliated with First Command Financial Services, Inc., or any of its affiliated entities.
