Some South Sound private sector businesses are adjusting to impacts from the federal government’s “sequester” budget cutbacks, and today’s Business Examiner publication highlights a number of them. See selected free articles at this link as well as the other items from the June 10th issue.
Inside the Army and Air Force fences, middle-class military families are finding it harder to sock away dollars for the future, despite a growing commitment to prepare for defense downsizing through frugal living.
The First Command Financial Behaviors Index® reveals that middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000) put away an average of $2,609 per month into savings and retirement accounts during the first quarter, down 20 percent from the end of 2012 and 33 percent from the third quarter of 2012.
At the same time, many military families have been intensifying their commitment to belt-tightening strategies as they read the headlines about coming reductions-in-force that may shrink the numbers of active duty service members.
In February almost half (46 percent) said they were preparing for sequestration by cutting back on everyday spending, up 7 points from January. And 37 percent of respondents said their sequester preparations included increasing savings, up 7 points from January.
“Many military families have been responding to sequestration by making a real commitment to shore up their budgets and embrace frugal living,” said Scott Spiker, CEO of First Command Financial Services Inc., “but it hasn’t been enough to offset an overall decline in savings among middle-class service members. They are facing the challenge of finding enough dollars in their budget to make good on that commitment.”