FORT WORTH, Texas - (Business Wire) Americans plan to reduce holiday spending again this year, continuing a larger trend toward embracing frugality as a way of life. The September survey of the First Command Financial Behaviors Index™ reveals that over one-half of respondents (57 percent) claim they will spend less on gifts. Consumers also say they will:
- set a maximum dollar amount on gifts (42 percent)
- give fewer gifts to each person (41 percent) and
- give gifts to fewer people (39 percent).
Only 17 percent of respondents say do not plan to cut back at all during the holidays.
These results lend support to the latest forecasts that holiday spending will be flat or fall this year. On Oct. 6, the National Retail Federation announced that it is projecting a 1 percent decline in holiday retail spending. Deloitte Research is predicting flat sales for this holiday season.
“Cutting back on holiday spending is a reasonable and sensible strategy in this uncertain financial environment,” said Scott Spiker, CEO of First Command Financial Services, Inc. “Despite signs of a tentative financial recovery, three-quarters of survey respondents say they are stressed about the current economic situation. By tightening their belts and cutting spending, these families are giving themselves the gift of financial peace of mind.”
About half of September respondents said they have cut back on household spending by:
- reducing leisure activities (54 percent),
- reducing clothing purchases (51 percent),
- shopping at discount stores (46 percent) and
- increasing coupon use (45 percent).
And these frugal behaviors may be here to stay. The percent of families who say they have cut back for good totaled 23 percent in September, up from 14 percent in February. Roughly half of survey respondents say they have embraced frugality as a way of life.
This is the second consecutive year that the First Command Financial Behaviors Index™ has pointed to leaner holiday spending. Results of the November 2008 survey indicated that 59 percent of American families planned on spending less during the holidays.
About the First Command Financial Behaviors Index™
Compiled by Sentient Decision Science, LLC, the First Command Financial Behaviors Index™ assesses trends among the American public’s financial behaviors, attitudes and intentions through a monthly survey of approximately 1,000 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 +/- 3.1 percent with a 95 percent level of confidence. www.firstcommand.com/research
About Sentient Decision Science, LLC
Sentient Decision Science was commissioned by First Command to compile the Financial Behaviors Index™. Sentient is a full-service market research firm with special vertical expertise within the financial services industry. Sentient specializes in advanced research design 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 personalized financial plans that emphasize accumulating wealth while reducing risk, First Command Financial Advisors have established lasting relationships with hundreds of thousands of client families since 1958.
First Command Financial Services, Inc. is the parent company of First Command Financial Planning, Inc. (Member SIPC, FINRA) and First Command Bank (Member FDIC). Financial planning services and investment products, including securities products are offered by First Command Financial Planning, Inc. Insurance products and services are offered by First Command Financial Services, Inc. Banking products and services are offered by First Command Bank. Securities products are not FDIC insured, have no bank guarantee and may lose value. In certain states, First Command Financial Services, Inc. is a separately registered domestic corporation and does business in California as “First Command Insurance Services.” A financial plan, by itself, cannot assure that retirement or other financial goals will be met.
First Command Financial Services
Mark Leach, 817-569-2419
Media Relations
msleach@firstcommand.com
www.firstcommand.com
