Newspaper headlines and Internet postings tell the heartbreaking story:
» Foreclosures in military towns surge at four times U.S. rate
» Congress passes tax relief for military families
» Hard up soldiers need food vouchers
Here at First Command, we share the nation’s concerns about the financial hardships facing so many of our service personnel. But at the same time we are happy to report some good news about military families and the positive ways they manage their money. Among households with incomes of $50,000 or more a year, military families actually save more – and feel better about their finances – than the average U.S. consumer, according to a landmark research initiative commissioned by First Command.
Conducted by Sentient Decision Science, LLC, the two-year study reveals that families who systematically save and have actively established financial plans feel significantly more secure and optimistic about the future.
We have learned that military families in particular display the specific behaviors associated with feelings of financial hope and optimism, and they experience a greater sense of emotional security than other middle-income Americans in these uncertain economic times.
One of the key financial behaviors identified in our survey is the habit of regular savings. We are pleased to have third-party, independent confirmation of something we’ve always suspected: military families save significantly more than the average U.S. consumer. Military respondents reported saving an average of $250 per month, significantly more than the $150 reported by all survey respondents. And military families with a financial plan saved even more – $400 per month, twice the $200 average for those U.S. consumers with a financial plan.
Military families carry roughly the same level of credit card and other short-term debt as other U.S. consumers. But due in part to their higher levels of savings, military families still report greater feelings of financial security month to month. About half (51 percent) of military respondents report they feel extremely or very financially secure month to month. Just 35 percent of U.S. consumers report the same feelings of security. Military families also report greater confidence their financial situation will improve in the next year and that they will be able to retire comfortably.
The experiences reported by the military families in our study lend further support to our overall findings – and our long-held belief – that disciplined financial behaviors increase feelings of security and hope. So if you’re troubled by news stories about rising foreclosures and other economic troubles, feeling better may be easier than you think. The positive behaviors of financially-successful military families offer a promising template for gaining a greater sense of confidence about the future.
A financial plan, by itself, cannot assure that all retirement or other financial goals will be met. First Command Financial Services, parent of First Command Financial Planning. Insurance products and services are offered by First Command Financial Services. Financial planning services and securities products are offered by First Command Financial Planning (member SIPC). In certain states, First Command Financial Services is a separate domestic company and does business in California as “First Command Insurance Services.” Securities products are not FDIC insured, have no bank guarantee and may lose value.