The changing terrain: Sequestration
The majority of military families surveyed in First Command’s most recent Financial Behaviors Index® remain concerned about cuts to defense spending, with seven-in-10 feeling anxious and anticipating being financially affected by the cuts. Approximately half said their top two concerns are a reduction in annual pay increases and increased responsibility for healthcare costs. Interestingly, concern about both of these issues rose about 10 points over the previous month’s survey.
However, concern over job security fell nearly 20 points, from more than half expressing concern in the previous month to only one-third in the current month’s survey.
Nearly four-in-10 are confident that Congress will void sequestration, thus avoiding a return to automatic budget cuts in 2018. Twenty-nine percent believe Congress should repeal the caps on military and non-military budgets, while 43 percent believe the caps should be lifted only on military spending.
Military families are dealing with concerns about cuts to defense spending through financial preparedness, with three-quarters reporting taking action. Nearly half of families are cutting back on everyday spending and about four-in-10 are increasing savings.
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