| FOR IMMEDIATE RELEASE Apr. 21, 2009 |
Contact: Mark Leach Media Relations 817-569-2419 msleach@firstcommand.com www.firstcommand.com |
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Military families feeling better financially than the average American, First Command reports
First Command Financial Behaviors Index reveals military families are less stressed about economy and feel less stretched financially
FORT WORTH, Texas - Military families are weathering the current recession with more optimism and less stress than the general U.S. population, according to the First Command Financial Behaviors Index.
Results of the Index's semi-annual military survey indicate that these families are less likely to feel financially stretched than average Americans (seven percent versus 15 percent). And military families are less likely to report feeling extremely or very stressed about the current economic situation compared to the general population (14 percent versus 26 percent). This sense of optimism is reflected in the Index's military score for March of 105, which is 19 points higher than the general population score.
“There is no question that many Americans are seeing the effects of the recession in their everyday lives,” said First Command CEO Scott Spiker. “But our data has shown that military families are uniquely poised to weather the current downturn. They display the specific behaviors that are associated with feelings of financial hope and optimism.”
The Index revealed striking differences in military families with a financial plan versus those without a plan. Just over half (51 percent) of respondents with a financial plan feel confident about their ability to retire comfortably, while only 33 percent of those without a plan are confident. Further, families with a plan are more likely to be comfortable with their current level of debt than those without a plan (29 percent and 13 percent, respectively).
“Families with a financial plan through a financial advisor are less worried about retirement and debt because they're not in it alone,” Spiker said. “Having a coach through the process provides a valuable outside perspective and may help families avoid knee-jerk decisions.”
Having a financial plan also appears to have a positive effect on savings behaviors for military families. Those families with a plan reported short-term savings in March of $1,183, up 38 percent from the Index's previous military family survey in September. Those without a financial plan actually decreased short-term savings by 6 percent to $707. Families with a financial plan reported putting 71 percent more in long-term savings than those without a plan ($398 and $233, respectively), though the dollar amounts increased for both groups from September
Military families across the board have increased monthly retirement savings since September. Those with a financial plan report placing $988 in retirement savings monthly, about 40 percent more than those without a plan ($706).
Payments toward long-term debt increased for those families with and without a financial plan, while payments toward short-term debt increased for those with a financial plan but remained fairly level for those without a plan. Military families with a financial plan report paying $1,381 toward long-term debt each month-25 percent more than those without a plan.
“These proactive savings and debt-reduction behaviors are great news,” Spiker said. “During good times and bad, those families that continue to boost savings and reduce debt are less likely to feel stressed and better able to withstand the ups and downs of the economy.”
About the First Command Financial Behaviors Index
Compiled by Sentient Decision Science, LLC, the First Command Financial Behaviors Index assesses trends among the American public's financial behaviors, attitudes and intentions through a monthly survey of approximately 1,000 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 +/- 3.1 percent with a 95 percent level of confidence. (Note: Military data is collected twice a year in September and March through a survey of approximately 410 members of military households. The margin of error is +/- 4.8 percent.) www.firstcommand.com/research
About Sentient Decision Science, LLC
Sentient Decision Science was commissioned by First Command to compile the Financial Behaviors Index. Sentient is a full-service market research firm with special vertical expertise within the financial services industry. Sentient specializes in advanced research design 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 personalized financial plans that emphasize accumulating wealth while reducing risk, First Command Financial Advisors have established lasting relationships with hundreds of thousands of client families since 1958.