Financial Concerns Prompt Military Families To Trim Thanksgiving Plans, First Command Reports

Financial uncertainty and concern is prompting a record number of middle-class military families to kick off this year’s holiday spending season with a leaner Thanksgiving celebration.

First Command’s annual Thanksgiving spending survey reveals that 82 percent 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) say their Thanksgiving plans will change as a result of the current economic situation. That’s up 20 points from last year. In contrast just 43 percent of civilian families say their plans will change. That’s down eight points from last year.

The latest survey findings from the First Command Financial Behaviors Index® reveal that active-duty families will be cutting back on Thanksgiving in a variety of ways, including:

• Reducing travel (32 percent)
• Sticking to a set budget (31 percent)
• Dining with immediate family members only (30 percent)
• Spending less on decorations (24 percent)
• Spending less on food (21 percent)
• Go to someone else’s house for dinner (18 percent)
• Tie: Have a “pot luck” dinner /Go out to a restaurant for dinner (15 percent)

Although changing Thanksgiving plans in response to financial concerns is not new, this is the first year for many military families to plan on having a pot-luck dinner (41 percent) or going to someone else’s house for dinner (60 percent).

This Thanksgiving’s dramatic surge in frugal spending plans comes at a time when many servicemembers and their families are feeling considerable financial uncertainty and concern related to defense downsizing and sequestration. September survey results reveal that:

• 79 percent expect to be financially affected by anticipated cuts to defense spending.
• 76 percent are anxious about cuts to defense spending, a record high.
• 55 percent are concerned about their job security in the coming months, also a record high.

“Our Thanksgiving survey results reveal a striking escalation of the frugal spending behaviors that began with the recession and are continuing with the military budget cuts of sequestration,” said Scott Spiker, CEO of First Command Financial Services, Inc. “Three out of four career military families are anxious about cuts to defense spending, and four out of five expect to be financially affected. We also expect to see these concerns reflected in the results of our seventh annual holiday spending survey now in development. By spending less, cutting debt and saving more, military families are making frugal living a year-around habit.