“Americans have made a New Year’s resolution to ensure their financial security in 2010,” said Scott Spiker, CEO of First Command Financial Services, Inc. “The commitment is particularly strong among those with a financial plan. These goal-oriented consumers are redoubling their efforts to secure a strong financial future and achieving a greater sense of hope and security in the process.”
This new frugality can be seen in the growing number of consumers who have permanently cut back on spending. In December, 27 percent of Americans indicated that they have cut back for good, nearly double the 14 percent who expressed the same sentiment at the beginning of 2009. The trend was underscored during the 2009 holiday shopping season, when 58 percent of survey respondents indicated that they would spend less than they did in 2008. Their cost-conscious behaviors were a repeat of 2008, when consumers responded to the economic turmoil with a reduction in holiday spending.
The desire of American families to increase savings and decrease debt can also be seen in their financial aspirations for 2010. They have resolved to:
- Cut back on excessive spending (40 percent)
- Get out of debt(35 percent)
- Use cash or debit more often instead of credit cards(29 percent)
- Learn not to live beyond their means(25 percent)
- Start saving money for retirement or put more money into retirement savings(23 percent)
- Learn to budget responsibly (22 percent)
“Given these sound financial aspirations, Americans seem committed to a year marked by fiscal responsibility,” Spiker said. “If January resolve leads to February follow-through, we could see an upward trend of feelings of financial security and optimism by the end of March.”
