Frugality is Key for Military Family Resolutions

Editor's note: The following analysis comes from a Financial Behaviors Index release.

Men and women in uniform are responding to another year of economic uncertainty with a set of New Year’s resolutions that focus on frugal living.

The latest results of the First Command Financial Behaviors Index reveal that nine out of 10 middle-class military families (senior non-commissioned officers and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000)  have identified one or more financially-themed resolutions for the new year. The First Command Financial Behaviors Index®’s  top financial aspirations for 2012 are:

1. Cut back on excessive spending (selected by 49 percent of survey respondents)

2. Get out of debt (47 percent)

3. Start saving money for retirement or put more money into retirement savings (42 percent)

4. Use cash or debit more often instead of credit cards (39 percent)

5. Learn to budget responsibly (30 percent)

6. Improve credit score (29 percent)

7. Learn not to live beyond your means  (25 percent)

8. Make sound investments in the stock market (23 percent)

9. Shop more at discount stores/for discount brands and keep track of financial activities (tie at 22 percent each)

10. Be financially independent (18 percent)

These New Year’s Resolutions come at a time when active-duty families are concerned about a variety of financial issues. The Index reveals that seven out of 10 survey respondents are worried about government cuts to military retirement benefits and half are worried about the state of the economy. Still, almost half of servicemembers feel better about their personal financial situation as compared to last year.

“Despite significant economic concerns, many military families are feeling better about their finances,” said Scott Spiker, CEO of First Command Financial Services, Inc. “This combination of concern  and optimism is creating an environment in which  servicemembers are inspired to take responsibility for their own financial well being. As we move through the new year we expect to see military families continue to take the kinds of actions that will make them feel better about their finances and prepare them for the future.”