Continued High Unemployment Leads Many to be More Frugal

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.   

According to a press release, 48% of respondents who believe we are in a double-dip recession have increased their use of coupons, compared to 41% of those who do not believe we’re in a second downturn. Likewise, 43% of respondents who believe we are in a double-dip recession are reducing travel versus 34% who do not believe we’re in a second downturn.  

Other frugal behaviors cited by respondents include:  

• Buying generic instead of name brand (40% versus 29%)  
• Shopping at discount stores (50% versus 37%)  
• Cooking at home more often (53% versus 43%)  

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.   

The First Command Financial Behaviors Index also revealed that more Americans are bumping up their retirement savings to cover health care costs (see Americans Bumping up Retirement Savings to Cover Health Care Costs).