Military Families Planning for Leaner Thanksgiving, First Command Reports

Motivated by growing economic concerns, the majority of middle-class military families are planning to scale back their Thanksgiving celebrations again this holiday season.

The latest survey findings from the First Command Financial Behaviors Index® reveal that 62 percent 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 nine points from last year.

Active duty families will be cutting back on Thanksgiving in a variety of ways, including:

• Reducing travel (29 percent)
• Sticking to a set budget (23 percent)
• Spending less on food (22 percent)
• Dining with immediate family members only (21 percent)
• Spending less on decorations (16 percent)

This Thanksgiving’s increased focus on frugal living comes at a time when many servicemembers and their families are feeling stress related to the nation’s budget turmoil, including the uncertainties related to a government shutdown, the debt ceiling, sequestration and defense downsizing.

“Military families are putting their Thanksgiving celebrations on a diet again this year, continuing a frugal trend that started with the recession and is continuing with the nation’s current budget stress,” said Scott Spiker, CEO of First Command Financial Services. “Our latest Index survey indicates active-duty households are growing less optimistic about their own financial futures. We have seen a drop in feelings of financially security month to month and a drop in confidence in the ability to retire comfortably.  The good news is that many military families are responding with the same positive financial behaviors that have served them well during the economic downturn, including cutting back on household spending.”

Middle-class families in the general population also expect to cut back for Thanksgiving, and they’ll be depending on the same cost-cutting behaviors targeted by military households. The Index reveals that 51 percent of general population families say their Thanksgiving plans will change as a result of the current economic situation, up eight points from last year.

“Middle-class Americans are changing the way they celebrate Thanksgiving,” Spiker said. “Affected by the economic issues of the past several years, they are making frugal spending a year-around habit. Notably, these changes are turning Thanksgiving into a more intimate holiday. Four out of ten Americans who plan to dine only with immediate family members have done so for at least three years. Our nation’s new Thanksgiving tradition is a family-oriented, closer-to-home celebration.”

 –First Command Financial Behaviors Index® press release