Amid recent reports of high unemployment, Americans are increasingly concerned that economic conditions will continue to deteriorate and they are aiming to modify their financial habits accordingly.

The November survey of the First Command Financial Behaviors Index™ reveals that 32 percent of middle-class consumers think the U.S. economy will continue to fall deeper into a recession, a four point jump since September.

"We are seeing a reversal in Americans’ belief that the economy is on its way to recovery," said Scott Spiker, CEO of First Command Financial Services, Inc. "As recently as September, 41 percent of Americans stated that the economy had hit rock bottom and was on its way to recovery, up strongly from 31 percent in May. Now, just 35 percent of respondents say the economy has hit bottom. This reversal pattern could be due to the still high unemployment rate, which has registered in the double digits for the past two months."

This noticeably bleaker outlook appears to be having a positive impact on spending plans. When asked about their financial aspirations for next year, Americans expressed a strong desire to embrace frugality. They want to:

- Cut back on excessive spending (40 percent)

- Get out of debt (35 percent)

- Use cash or debit more instead of using a credit card (29 percent)

- Learn to not live beyond their means (25 percent)

Furthermore, in paying for holiday purchases, more Americans plan on using cash than credit (67 percent versus 49 percent). Approximately one-quarter of those who use credit cards plan on using their credit card at least somewhat less than last year.

"Americans have taken the lessons of this recession to heart," Spiker said. "They are looking to curb their spending and get out of debt. Half of respondents say they have embraced frugality as a way of life."