Military Families Deploying Tax Refunds to Cut Debt and Grow Savings, First … – MarketWatch (press release)

FORT WORTH, Texas, Apr 30, 2013 (BUSINESS WIRE) —
Facing the continuing fiscal uncertainties of defense downsizing, the
majority of middle-class military families with a tax refund in their
future are planning to spend it on shoring up their family finances.

Recent survey findings from the First Command Financial Behaviors Index(R)
reveal that about two thirds of middle-class military families (senior
NCOs and commissioned officers in pay grades E-6 and above with
household incomes of at least $50,000) who have received or expect to
receive a tax refund plan to use it to save more and cut debt. In
contrast, one in four plan to spend their refunds on home improvements,
vacations and other consumer pursuits.

“Again this year, our annual survey on tax refunds reveals that the
majority of middle-income military families are focused on frugal
living,” said Scott Spiker, CEO of First Command Financial Services,
Inc. “They are embracing prudence and self-reliance as a way of life.
This is a particularly important trend today when so many of our
servicemembers and their families are facing the financial uncertainties
of defense downsizing. Our survey reveals that almost half of
respondents have been preparing for sequestration budget cuts by cutting
back on everyday spending. Even the recent increase in the Social
Security tax rate has prompted many consumers to cut back. Clearly
military families are taking positive steps to get their financial lives squared
away.”

The top tax refund spending plans among middle-class military families
for 2013 are:

—
Pay down debt (47 percent)

—
Put into general savings (31 percent)

—
Pay monthly bills (16 percent)

—
Build up an emergency fund (16 percent)

—
Home improvements (14 percent)

—
Vacation (13 percent)

—
Put toward an investment account (11 percent)

—
Prepay major bills or expenses (8 percent)

—
Consumer purchases (6 percent)

—
Dining out (3 percent)

—
Apply to future taxes (3 percent)

—
Contribute to or open a college savings fund (2 percent)

Notably, the Index reveals different focuses among servicemembers with
and without a financial plan provided by a financial advisor.
Middle-class military families with a financial plan are significantly
less likely to spend their tax refunds on paying down debt than those
without a financial plan (35 percent versus 56 percent). And they are
more likely to commit their refunds to optional expenditures, such as
home improvements (23 percent versus 8 percent).

“These results suggest that military families with a financial plan
already have sound savings and debt management behaviors, allowing them
to more comfortably commit their tax refunds to discretionary goals and
aspirations,” Spiker said. “The key to enjoying this level of financial
confidence and security is the coaching relationship offered by the
financial advisor who provides the plan. Through this ongoing
relationship, our men and women in uniform and their families are
developing the behavioral discipline to commit to important financial
goals and dreams.”

About the First Command Financial Behaviors Index(R)

Compiled by Sentient Decision Science, Inc., the First Command Financial
Behaviors Index(R) 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. www.firstcommand.com/research

About Sentient Decision Science, Inc.

Sentient Decision Science was commissioned by First Command to compile
the Financial Behaviors Index(R). 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 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 knowledgeable
advice and coaching of the financial behaviors conducive to success,
First Command Financial Advisors have built trustworthy, lasting
relationships with hundreds of thousands of client families since 1958.

First Command Financial Services, Inc., is the parent of First
Command Financial Planning, Inc. (Member SIPC, FINRA), First Command
Insurance Services, Inc. and First Command Bank. Financial planning
services and investment products, including securities, are offered by
First Command Financial Planning, Inc. Insurance products and
services are offered by First Command Insurance Services, Inc., in all
states except Montana, where as required by law, insurance products and
services are offered by First Command Financial Services, Inc. (a
separate Montana domestic corporation). Banking products and services
are offered by First Command Bank. In certain states, as required by
law, First Command Insurance Services, Inc. does business as a separate
domestic corporation. Securities products 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 Educational Foundation is a 501(c)(3) public charity. It is not
affiliated with First Command Financial Services, Inc., or any of its
affiliated entities.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20130430006274r1&sid=cmtx4&distro=nx

SOURCE: First Command Financial Services

        
        First Command Financial Services 
        Mark Leach, 817-569-2419 
        Media Relations 
        msleach@firstcommand.com 
www.firstcommand.com        

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