Half of Middle-Class Americans Say Double-Dip Recession Has Arrived, First Command Reports by EON

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									Half of Middle-Class Americans Say Double-Dip
Recession Has Arrived, First Command Reports
First Command Financial Behaviors Index® Reveals Continued High Unemployment Fueling Concerns

September 07, 2010 11:00 AM Eastern Daylight Time  

FORT WORTH, Texas--(EON: Enhanced Online News)--Troubled by continued high unemployment and a
lackluster job market, half of middle-class consumers believe the U.S. has moved into a double-dip recession – and
they are preparing for the difficult times ahead by looking for new ways to save money and cut spending.

The First Command Financial Behaviors Index® reveals that almost three quarters of survey respondents who think
we are already in a double-dip recession say they are striving to be more frugal in their spending habits. Three out of
five of these respondents say that although they consider themselves to be frugal, they are finding new ways to save
money.

“Given the belief that market instability could be with us for an extended period of time, those families who think we
are currently in a double-dip recession are redoubling their efforts to embrace frugal living,” said Scott Spiker, CEO
of First Command Financial Services, Inc. “These consumers are also more likely to cut spending than those who do
not think we are sliding back into recession.” 

For example, 48 percent of respondents who believe we are in a double-dip recession have increased their use of
coupons, compared to 41 percent of those who do not believe we’re in a second downturn. The same pattern is
evident in such frugal behaviors as:

    l   Reducing travel (43 percent versus 34 percent)
    l   Buying generic instead of name brand (40 percent versus 29 percent)
    l   Shopping at discount stores (50 percent versus 37 percent)
    l   Cooking at home more often (53 percent versus 43 percent)

Americans aren’t looking for a sustained recovery any time soon. One-third of survey respondents who think we are
already in a double-dip recession believe that it will be more than three years before the market is stable for an
extended period of time.

“Almost half of the consumers who think we are in a double-dip recession expect to see the boom-and-bust cycle
continue with a rare triple-dip recession,” Spiker said. “Should this prediction prove true, Americans who embrace
frugal living will be the best equipped to successfully weather a long-term downturn.” 

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.
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). Financial planning services
and investment products, including securities products are offered by First Command Financial
Planning, Inc. Insurance products and services are offered by First Command Financial Services,
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.

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

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