First Command Reports: Military Families Plan to Spend Less and Save More In 2021

First Command Financial Behaviors Index® reveals top financial resolutions for new year

FORT WORTH, Texas--()--America’s career military are looking to improve their family finances in the year ahead with a continued focus on spending less, cutting debt and saving for retirement.

The latest results of the First Command Financial Behaviors Index® reveal that 74 percent of middle-class military families (commissioned officers and senior NCOs in pay grades E-5 and above with household incomes of at least $50,000) are extremely or very confident that their household finances will improve over the next year. That confidence is accompanied by a variety of positive financial aspirations, with most survey respondents identifying at least one positive strategy or frugal activity they will pursue in 2021.

Top financial improvement strategies identified by military families include cutting back on excessive spending, which was selected by 36 percent of respondents. That’s up slightly from 31 percent the previous year. Other top strategies include:

● Improving credit score

35 percent

● Getting out of debt

34 percent

● Starting to save for retirement or put more money into retirement savings

28 percent

● Learning to budget responsibly

27 percent

Notably, several of these behaviors align with financial challenges being reported by some career military families. Survey respondents say they are experiencing problems with credit card debt (31 percent), overall debt levels (27 percent), spending without a budget (26 percent) and inadequate savings (24 percent).

Many families continue to express financial concerns and uncertainty related to COVID-19. The Index reveals that 77 percent of military families are extremely or very concerned about the pandemic. Forty-four percent of military spouses say they have lost employment or income because of the virus. More than half (55 percent) of military families say they expect to tap into emergency funds in the next 12 months.

Financial advisors are helping many families counteract feelings of uncertainty about the future. According to the Index, 79 percent of active-duty families who have a financial advisor feel confident their financial situation will improve in the next year. That compares to just 38 percent who do not have an advisor.

“Families who work with a financial coach are more likely to enact frugal strategies in their pursuit of financial security,” said First Command President/CEO Mark Steffe. “We look for a growing number of military families to put their trust in knowledgeable financial professionals as they seek new ways to deal with an uncertain economy and improve their finances in 2021.”

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 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.

©2021 First Command Financial Services, Inc. is the parent company of First Command Brokerage Services, Inc. (Member SIPC, FINRA), First Command Advisory Services, Inc., First Command Insurance Services, Inc. and First Command Bank. Securities products and brokerage services are provided by First Command Brokerage Services, Inc., a broker-dealer. Financial planning and investment advisory services are provided by First Command Advisory Services, Inc., an investment adviser. Insurance products and services are provided by First Command Insurance Services, Inc. Banking products and services are provided by First Command Bank (Member FDIC). Securities 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. First Command Financial Services, Inc. and its related entities are not affiliated with, authorized to sell or represent on behalf of or otherwise endorsed by any federal employee benefits programs referenced, by the U.S. government, or the U.S. Armed Forces.

Contacts

Mark Leach
Media Relations
817-569-2419
msleach@firstcommand.com

Release Summary

First Command reports that career military families are looking to improve their finances in 2021.

Contacts

Mark Leach
Media Relations
817-569-2419
msleach@firstcommand.com