| FOR IMMEDIATE RELEASE May 13, 2010 |
Contact: Mark Leach Media Relations 817-569-2419 msleach@firstcommand.com www.firstcommand.com |
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Military families outpace average Americans in savings and debt payments, First Command reports
First Command Financial Behaviors Index™ reveals military families are putting more dollars into savings and debt reduction than other middle-class consumers
FORT WORTH, Texas – Military families are putting more dollars toward savings and reducing debt than other middle-class consumers, according to the First Command Financial Behaviors Index™.
Results of the Index’s semi-annual military survey indicate that the average monthly amount military families put into their retirement accounts and short- and long-term savings during the first quarter totaled $2,425, representing 6 percent more than the rank and file of average Americans. And the average debt reduction payments by military families totaled $2,212, an amount 9 percent greater than the general population.
“These impressive results for military families reflect a positive trend we first identified in the fall,” said Scott Spiker, CEO of First Command Financial Services, Inc. “Military households have responded to the recent economic turmoil by taking control of their personal finances. Their continued focus on saving more and cutting debt is a significant part of a larger trend toward frugal living and a model for the nation at large.”
On the savings front, activity has been especially strong in retirement savings. The average amount military families put into their retirement accounts in the first quarter totaled $1,053, more than double the $455 reported in the third quarter of 2008. Average retirement savings for the general population totaled $870. Military families are also saving slightly more for short-term needs. Their average short-term savings totaled $916 compared to $905 for the general population.
Military families are leading the way on short- and long-term debt payments, too. Average payments on short-term debt totaled $1,032 compared to $969 for the general population. Long-term debt payments were also higher ($1,180 versus $1,064).
Notably, military households with a financial plan put a higher amount, on average, into savings and investment accounts than military households without a plan. During the first quarter, overall savings for those with a financial plan totaled $2,721 compared to $2,256 for those without. A similar difference was reported for long-term debt payments ($1,301 versus $1,113).
“Military families without a financial plan are twice as likely to feel financially stretched than those with a plan,” Spiker said. “Our research continues to show that people who save more and cut debt feel less stressed and more optimistic about their financial future.”
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.
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