Navy Federal Survey Finds Military Families Plan to Spend More This Summer

A survey by the nation’s largest credit union found its military members behaved much like other Americans during the pandemic: They saved aggressively at its onset and most are now ready to travel and spend this summer like in the pre-pandemic days.

Navy Federal Credit Union of Vienna, Va. ($144.5 billion in assets, 10.3 million members) conducted online interviews with more than 1,100 active duty service members, veterans and military spouses from March 24 to April 6.

It found the vast majority of members cut back on at least one expense category after COVID-19 was declared a pandemic in March 2020, and two-thirds this spring said they expect their spending this summer will match or exceed spending in pre-pandemic summers.

The survey fits the general pattern. Banks and credit unions have reported a surge in savings and a drop in credit card balances since the pandemic began — trends that started showing signs of diminishing this spring.

Similarly, a TransUnion survey last spring found more young adults were optimistic and more of them planned to increase retail spending than other adults. The Chicago credit reporting agency’s survey 3,027 U.S. adults from May 24 to June 1 also found those describing themselves as optimistic included 67% of the fully vaccinated, 71% of those who plan to get fully vaccinated and 52% of those who don’t plan to get fully vaccinated.

Navy Federal did not report results based on vaccination status in its July 19 news release.

Navy Federal found most military households cut expenses and adopted new financial habits after COVID-19 was declared a pandemic in March 2020. The survey found 89% of respondents cut back on at least one expense.

The most common expenses cut included: vacation travel (63%), eating out (58%), entertainment (57%), self-care (41%) and clothing (40%).

In addition, 77% of the households said they adopted at least one new financial habit. The most common were:

• 43% cut back on daily spending.
• 36% kept track of finances more closely.
• 27% established or added to an emergency savings fund.
• 26% paid off their credit card bill monthly.
• 25% used a digital/contactless payment.
• 23% maintained a monthly budget.
• 20% set up autopay for bills or recurring payments.

Most military families said they plan to re-emerge this summer and start spending again. Overall, 69% of military families reported they plan to do more or just as much in summer 2021 as they did in past summers, and 64% said they will spend as much or more this summer than in pre-pandemic summers.

That left 35% who said they plan to maintain their pandemic thrift.

The summer plans included the following:

• Military families reported they plan to travel more frequently (43%), go out to restaurants and bars (31%), and shop in-person at stores (25%).
• More active duty service members (34%) planned to go out and do more things this summer than in the past than veterans (21%) and military spouses (23%).
• Most military families planned to bring back vacation travel (60%).

The survey found differences across generations.

The younger you are, the more likely you were to pick up a new financial habit. Survey results included:

• Ages 18-34 (86%).
• 35-54 (76%).
• 55+ (66%).

Younger people in the military community were more likely to have increased the amount of food they have ordered for delivery or pickup. Survey results included:

• 18-34 (46%).
• 35-54 (33%).
• 55+ (36%).

Younger people reported feeling high levels of uncertainty or feeling stuck more so than older generations. Survey results showed:

• 18-34 (26%).
• 35-54 (21%).
• 55+ (12%).

The research study showed that military spouses experienced a greater impact from the pandemic, and its effects will likely last, even as the pandemic wanes.

Of households who reported they cut childcare expenses in 2020, 55% indicated they plan on delaying or not bringing back this expense.

Nearly half of active duty spouses reported cutting back on self-care during COVID compared to just 31% of service members. Among active duty spouses, 81% reported a higher level of uncertainty about post-pandemic life.

Navy Federal said it uses the research to make its services more timely and relevant.

Clay Stackhouse, a retired Marine Corps colonel and regional outreach manager at Navy Federal, said the credit union dedicates resources to equip members with the financial tools and knowledge they need to meet their financial goals.

“The COVID-19 pandemic disrupted every facet of our lives, and our members have taken this turmoil in stride and adapted their financial habits to face this new challenge,” Stackhouse said. “Our proactive approach and ongoing dedication to our members allowed us to support military families during this challenging time.”