Consumers Cutting Expenses as Job Concerns Intensify, First Command Reports

First Command Financial Behaviors Index Reveals American Families Are Continuing
to Cut Back as Unemployment Rate Hits 26-Year High
FORT WORTH, Texas--(Business Wire)--
As job security concerns intensify, American families are continuing to tighten
their belts and cut spending, according to the First Command Financial Behaviors
Index.

The Index`s March survey reveals that the vast majority of Americans say they
will continue to cut back on spending for at least six months, 51 percent will
continue cutting costs for more than a year and 16 percent say they have "cut
back for good."

"We are seeing encouraging signs that sound financial behaviors are starting to
set in," said Scott Spiker, CEO of First Command. "We are somewhat concerned
that 28 percent of people say they will stop cutting back after a year,
suggesting a possible return to damaging, overly consumptive behaviors. But on
the whole, Americans appear poised to return to the traditional values of
personal responsibility and self-reliance in the coming economic recovery."

The first-quarter Index results indicate that consumers have further intensified
their belt tightening behaviors in a number of ways since the end of 2008, when
it became strongly evident that consumer spending habits were dramatically
changing:

* Attempted to reduce utility bills (58 percent versus 52 percent),
* reduced leisure activities (57 percent versus 54 percent) and
* reduced clothing purchases (52 percent versus 48 percent).

Additionally, many U.S. households indicated that they are practicing smarter
spending strategies, including:

* shopping at discount stores (51 percent versus 49 percent),
* increasing coupon use (46 percent versus 44 percent) and
* buying generic (43 percent versus 37 percent).

These increases come at a time when Americans are experiencing strong anxiety
over job security. As the U.S. unemployment rate rose to 8.5 percent - its
highest point since 1983 - Americans reported being increasingly concerned about
their jobs. In March, nearly one-half (47 percent) of Americans ages 25 to 49
reported being concerned about job security.

"Job loss remains a real concern for American families," Spiker said. "Moreover,
26 percent of U.S. consumers are extremely or very stressed about the current
economic situation."

Still, U.S. consumers are increasingly optimistic about the length of the
current recession. News reports suggesting that the recession may be over by the
end of the year, combined with an uptick in the stock market, may have
contributed to this heightened sense of optimism. As evidence of this, both the
percentage of Americans concerned with the state of the economy (69 percent) and
the stock market (43 percent) dropped four points from February to March.

"While we are still clearly in an economic crisis, recent encouraging economic
news could have Americans feeling more comfortable putting their money into
savings and investments in the coming months," Spiker said.

In fact, Americans` savings and debt behaviors are already improving. From
February to March, the Behaviors sub-index rose 16 points. This improvement was
driven largely by a 38 percent increase in the amount survey respondents put
into their retirement accounts, a common occurrence at this time of year due to
tax time investing. Furthermore, the percentage of Americans with positive
savings-to-debt ratios has increased 10 points since July 2008, indicating
systematic changes in accumulation of savings and paying down debt behaviors.

Attitudes are improving, too. The Attitudes sub-index rose five points from
February to March. Supported by the previously-mentioned increase in retirement
savings, the surge in optimism helped drive the Financial Behaviors Index to a
first-quarter finish of 86 - down two points from the end of 2008.

"The practice of saving increases financial optimism," Spiker said. "And it
doesn`t seem dependent on how much one has accumulated in savings. Rather, the
practice of saving creates an emotional lift."

Americans who have a financial plan through a financial planner continue to
report greater feelings of security in the current recession. Seven percent of
Americans with a plan through a planner are extremely stressed about the economy
compared to 10 percent of Americans without a planner.

"In times of crisis, financial planners offer the training, knowledge and
experience to help consumers take immediate vital action," Spiker said. "Our
surveys consistently show that people with a financial plan and a financial
planner report more positive and productive financial behaviors, intentions and
attitudes than those without. The assistance of a knowledgeable professional can
encourage disciplined, lifelong behaviors that enhance financial well-being and
long-term security for oneself and one`s family."

About the First Command Financial Behaviors Index

Compiled by Sentient Decision Science, LLC, the First Command Financial
Behaviors Index assesses trends among the American public`s financial behaviors,
attitudes and intentions through a monthly survey of approximately 1,000 U.S.
consumers aged 25 to 70 with annual household incomes of at least $50,000.
Results are reported quarterly. The margin of error is +/- 3.1 percent with a 95
percent level of confidence. Visit www.firstcommand.com/research.

About Sentient Decision Science, LLC

Sentient Decision Science was commissioned by First Command to compile the
Financial Behaviors Index. Sentient is a full-service market research firm with
special vertical expertise within the financial services industry. Sentient
specializes in advanced research design and statistical analysis of behavioral
and attitudinal data.

About First Command

First Command Financial Services and its subsidiaries, including First Command
Bank and First Command Financial Planning, assist American families in their
efforts to build wealth, reduce debt and pursue their lifetime financial goals
and dreams-focusing on consumer behavior as the first and most powerful
determinant of results. Through personalized financial plans that emphasize
accumulating wealth while reducing risk, First Command Financial Advisors have
established lasting relationships with hundreds of thousands of client families
since 1958.

First Command Financial Services, Inc. is the parent company of First Command
Financial Planning, Inc. (Member SIPC, FINRA) and First Command Bank (Member
FDIC). Insurance products and services are offered by First Command Financial
Services, Inc. Financial planning services and investment products, including
securities, are offered by First Command Financial Planning, Inc. Banking
products and services are offered by First Command Bank. Securities products are
not FDIC insured, have no bank guarantee and may lose value. In certain states,
First Command Financial Services, Inc. is a separately registered domestic
corporation and does business in California as "First Command Insurance
Services." A financial plan, by itself, cannot assure that retirement or other
financial goals will be met.

First Command Financial Services
Mark Leach, 817-569-2419
Media Relations
msleach@firstcommand.com
www.firstcommand.com

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