When paying bills with cash, people have no systematic method of payments. In addition, they must use receipts as their only record of payment. (A checking account provides a canceled check as a receipt of payment. Also, checks are available with carbon duplicates of the original check.) Working on a cash basis can also create problems if personnel are on leave or temporary duty. In such a case, members must make arrange- ments to forward their paychecks. This often results in delays in the receipt of a check. ALLOTMENTS.    —Allotments   provide   a good method for Navy members to handle their financial  affairs.  The  following  paragraphs describe voluntary and involuntary allotments. Voluntary Allotments.  —Voluntary allotments are requests by personnel to make a certain amount of their paycheck payable to someone else for the following reasons: • Purchase of U.S. savings bonds • Payment of premiums for life insurance • Repayment of loans to the Navy Relief Society • Allotments to dependents and relatives • Voluntary liquidation of debts to the United States • Payment to a banking institution or asso- ciation for credit to the account of the allottee • Repayment of loans for the purchase of a home or mobile home used as a residence by the allottee • Payment of pledges for the Combined Federal  Campaigns Involuntary  Allotments.  —Involuntary allotments from a Navy member’s pay are usually made when the person shows financial irrespon- sibility. Involuntary allotments are usually gar- nishments of a member’s pay. BUDGETING.  —Preparing and using a budget is the key to successful money manage- ment. A budget is a plan to spend money or a plan of  money  management.  Many  Navy  members have erroneous images of the meaning of a budget. They often associate budgets with detailed bookkeeping, stacks of papers, ledgers, and so forth. Many young members lack the discipline to follow a budget and dislike the chore of budgeting. If you can convince them to follow a budget, they are the winners. They will have a record of their income versus expenses, which will help them better manage their financial affairs. This provides them with the security of knowing their financial status rather than the insecurity of not being sure. To give your people the desire to budget their money, put budgeting into simple terms for them. Explain how a budget serves as a simple tool for the businesslike management of their finances. Ex- plain that budgeting provides an advance general plan for organized spending and savings instead of a record of payment set down afterward. Budgeting involves the spouse as well as the wage earner.   For married couples, handling money matters should be a joint effort. With two- income families, money management is a different ball  game.  The  “yours-mine-ours”  approach usually arises, requiring definite understandings. Certain inherent expenses become greater when both husband and wife earn wages. Couples also need to have an understanding as to what expenses they will pay from what funds. A written budget, properly prepared and followed, helps couples work out these problems. In counseling and advising your people on financial management, you may have to help them prepare their budgets. In budget preparation, you determine income and expenses; examine spending habits; and see what, if anything, you need to correct or improve. If personnel have financial problems, you help them find ways to improve their spending habits. To do this, you need to familiarize them with the following terms used in financial management: Gross income. The total amount of salary before any deductions Deductions. The amount of money taken from pay for income tax, social security, and other reasons Allotments. Those sums of money deducted from gross income to pay debts such as insurance premiums, debts due the United States, and family support Net Income. The total amount paid a member after all deductions and allotments are paid, often called take-home pay Fixed expenses. Expenses that are the same each month Flexible expenses. Expenses that change from month to month; sometimes called variable expenses 4-13