FORT WORTH, Texas -- (BUSINESS WIRE) -- While the military services are outlining spending cuts for the looming March 1 deadline on sequestration, military families are bracing for the potential impact on their personal finances.
“News reports on the increasing possibility that automatic budget cuts may be implemented in the coming weeks is intensifying the concerns of military families, who have been living with this uncertainty since 2011,” said Scott Spiker, CEO of First Command Financial Services, Inc. “Regardless of the resolution of the approaching sequester, our men and women in uniform understand that major military cuts are coming. The longer-term efforts to shrink the armed forces may well deliver a financial blow to many active-duty families. Military households are preparing for defense downsizing by making meaningful changes to their family finances.”
Recent survey results from the First Command Financial Behaviors Index® reveal that middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000) expect sequestration will affect their financial lives in a variety of ways. They anticipate defense downsizing will mean:
Active-duty families have been taking action to prepare for these changes. They have been shoring up their personal finances in a variety of ways, including:
Notably, these efforts are helping military families feel more optimistic about the months ahead. The Index reveals that 43 percent are extremely or very confident their own financial situation will improve in 2013. This compares to just 26 percent of the general population.
“Military families are responding to an uncertain future by spending less, saving more and paying down debt,” Spiker said. “By making positive changes in their financial lives these families are finding the peace of mind that comes from feeling more secure and confident in their 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.