| FOR IMMEDIATE RELEASE Dec. 17, 2009 |
Contact: Mark Leach Media Relations 817-569-2419 msleach@firstcommand.com www.firstcommand.com |
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Americans aim to curb spending and cut debt in 2010,
First Command reports
First Command Financial Behaviors Index™ reveals increasing consumer concerns about economy
FORT WORTH, Texas - Amid recent reports of high unemployment, Americans are increasingly concerned that economic conditions will continue to deteriorate and they are aiming to modify their financial habits accordingly.
The November survey of the First Command Financial Behaviors Index™ reveals that 32 percent of middle-class consumers think the U.S. economy will continue to fall deeper into a recession, a four point jump since September.
“We are seeing a reversal in Americans' belief that the economy is on its way to recovery,” said Scott Spiker, CEO of First Command Financial Services, Inc. “As recently as September, 41 percent of Americans stated that the economy had hit rock bottom and was on its way to recovery, up strongly from 31 percent in May. Now, just 35 percent of respondents say the economy has hit bottom. This reversal pattern could be due to the still high unemployment rate, which has registered in the double digits for the past two months.”
This noticeably bleaker outlook appears to be having a positive impact on spending plans. When asked about their financial aspirations for next year, Americans expressed a strong desire to embrace frugality. They want to:
- Cut back on excessive spending (40 percent)
- Get out of debt (35 percent)
- Use cash or debit more instead of using a credit card (29 percent)
- Learn to not live beyond their means (25 percent)
Furthermore, in paying for holiday purchases, more Americans plan on using cash than credit (67 percent versus 49 percent). Approximately one-quarter of those who use credit cards plan on using their credit card at least somewhat less than last year.
“Americans have taken the lessons of this recession to heart,” Spiker said. “They are looking to curb their spending and get out of debt. Half of respondents say they have embraced frugality as a way of life.”
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: Federal employee data is collected twice a year in September and March through a survey of approximately 410 members of federal employee 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.
First Command Financial Services, Inc. is the parent company of First Command Financial Planning, Inc. (Member SIPC, FINRA) and First Command Bank (Member FDIC). Financial planning services and investment products, including securities products are offered by First Command Financial Planning, Inc. Insurance products and services are offered by First Command Financial Services, Inc. Banking products and services are offered by First Command Bank. Securities products are not FDIC insured, have no bank guarantee and may lose value. In certain states, First Command Financial Services, Inc. is a separately registered domestic corporation and does business in California as “First Command Insurance Services.” A financial plan, by itself, cannot assure that retirement or other financial goals
