First Command Reports: Economic confidence highest in military families with a plan
November 22, 2023
FORT WORTH, Texas – Amid current economic uncertainties, career service members who follow a financial plan with a professional advisor are leading the middle class in fiscal optimism.
The latest results of the First Command Financial Behaviors Index® reveal that the majority of career military families (commissioned officers and senior NCOs in pay grades E-5 and above with household incomes of at least $50,000) who work with a financial advisor feel extremely or very confident in their:
- Financial situation improving in the next year (81% versus 48% of those without an advisor)
- Ability to retire comfortably (80% versus 44%)
- Financial security month to month (60% versus 41%)
Military families who work with a financial coach are less likely to worry about the state of the economy than their DIY colleagues – 39% versus 54%. The Index identified similar differences between the two groups over the costs of:
- everyday goods (34% with an advisor versus 54% without an advisor) and
- gas (28% versus 36%).
Feelings of financial confidence are aligning with a strong savings habit. Military families who work with an advisor report average monthly contributions to savings and retirement accounts totaling $3,177 per month versus $1,756 for their colleagues without an advisor. And they are amassing greater long-term savings and retirement holdings -- $271,715 versus $153,746.
Economic concerns are notably higher in the general population. But like their military counterparts, those who work with a financial advisor feel more financially confident and secure. They feel extremely or very confident in their:
- Financial situation improving in the next year (42% versus 24% of those without an advisor)
- Ability to retire comfortably (48% versus 22%)
- Financial security month to month (42% versus 24%)
General population families who work with a financial coach are less likely to worry about the state of the economy (55% versus 61% of those without an advisor).
“Economic anxieties are notably lower in families working with a financial coach,” said First Command President/CEO Mark Steffe. “At a time when economic concerns weigh on many middle-class households, those who partner with a professional advisor are putting away more dollars for the future than their friends and colleagues without an advisor. The combination of saving more, spending less and keeping debt under control is helping families grow their net worth. Working with a financial coach can bring significant benefits, especially to our Nation’s military families. With professional guidance they can feel more secure about their finances today and confident in their prospects for tomorrow.”
Watch for the trend to continue. Military families who work with an advisor are more likely than their DIY counterparts to say they plan to increase their monthly savings and investments in the months ahead. These positive intentions helped drive the latest quarterly Index score to 200 for those with an advisor versus 126 for those without an advisor. The overall score is 179, up three points from the previous quarter.
The Index is set to a benchmark of 100, which was assigned when the Index launched in 2008.
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. For more details on our research, please email MarketingInbox@firstcommand.com. http://www.firstcommand.com/fbi/
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 Brokerage Services, First Command Advisory Services and First Command Bank, coach our Nation’s military families in their pursuit of financial security. Since 1958, First Command Financial Advisors have been shaping positive financial behaviors through face-to-face coaching with hundreds of thousands of client families.