Anxiety over the future of defense spending and the economy are prompting many of America’s career military families to rein in their summer vacation plans.
First Command, a financial advising firm that caters to military families, reported the findings. The company’s annual survey on summer vacation spending reveals that 84 percent of middle-class military families say they are cutting back on spending as a result of the across-the-board cuts to defense and other federal spending, often referred to as sequestration.
This compares to just 46 percent of general population families, whose members are less likely to feel personally affected by military spending cuts.
Lingering concerns over the economy are also having a significant impact on summer vacation plans. The survey reveals that more than half (54 percent) of military families say they are tightening their spending plans. In contrast, just 26 percent of their civilian counterparts say they are cutting back due to economic concerns.
“Our men and women in uniform are planning to dial back their summer vacation plans at a rate almost twice that of the general population,” said Scott Spiker, chairman/CEO of First Command Financial Services, Inc. “Much of the difference is reflected in continuing concerns over defense spending. Sixty one percent of military families say they are feeling extremely or very anxious about military budget cuts. That’s about the same level of concern as a year ago. In comparison, less than half of their civilian counterparts feel this same level of worry. Frugal spending strategies represent a practical response to an uncertain financial future.”