According to The First Command Financial Behaviors Index, anxiety over the economy and 
sequestration is impacting the way army families are vacationing. Households are now applying one or more economizing tactics to their summer breaks. Popular cost reducing measures related to economic worries include:
- Driving rather than flying (35 percent)
- Cooking while on vacation rather than eating out (27 percent)
- Staying closer to home (25 percent)
- Tie: Taking shorter vacations / Visiting family members (23 percent)
- Tie: Taking “staycations” / Staying with friends (22 percent)
Similar methods were seen amongst those cutting back to due sequestration concerns.
RELATED: AmEx Travel: Demand for Summer on the Rise, Along With Costs
This dilemma is not a new one, The Index reveals that amongst military families who have changed their plans for economic reasons, 33 percent have been “visiting family” and 28 percent have been “driving rather than flying” for more than three years.
However, it’s not all bad news, with long term optimism on the rise. The report states that 54 percent of respondents reported feel extremely or very confident that their financial situation will improve in the next year, up from a year-to-date low of 45 percent in January. And 54 percent said they feel extremely or very confident in their ability to retire comfortably, up 18 points from a year-to-date low of 36 percent in March.
In spite of this, concern has increased over near-term household finances. The April survey respondents who said they did not feel financially stretched month to month dropped 15 points to 43 percent, the lowest level so far this year.
“These families have made spending less and saving more a permanent part of their financial behaviors” explains Scott Spiker, CEO of First Command Financial Services, Inc. “Cutting back on vacation spending is a reasonable and frugal response to an uncertain financial future.”