First Command Financial Behavior Index® reveals that three out of five middle-class military consumers are cutting back on everyday spending
FORT WORTH, Texas--(BUSINESS WIRE)-- Active-duty servicemembers are responding to the ongoing economic turmoil by shifting to a less risky approach to family finances.
The First Command Financial Behaviors Index® reveals that 52 percent of middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000) are taking a more conservative attitude toward money as a result of the economy. Top fiscal strategies reported by middle-class military families include:
- Cutting back on everyday spending (58 percent).
- Increasing savings (28 percent).
- Decreasing the aggressiveness of investments (24 percent).
- Moving investments to cash (15 percent).
- Working with a financial planner (6 percent).
This more conservative approach to spending and investing comes at a time with many middle-class military families are reporting strong feelings of financial security month to month. The Index reveals that 52 percent of survey respondents do not feel financially stretched and 41 percent feel extremely or very secure financially.
“Amid continuing news reports of a global economic crisis and defense downsizing, military families are taking control of their own financial well-being,” said Scott Spiker, CEO of First Command. “We are seeing a focus on the kinds of conservative spending, saving and investing behaviors that can help active-duty families lower their monetary risks. And as a result they are feeling better about their monthly finances.”
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.
Source: First Command Financial Services