Navy men and women should adopt a system
of accounting to keep their financial matters
straight and their affairs solvent. Navy members
rarely remain in one location or tied to one group
of personnel who know their credit, abilities, past
accomplishments, and general reputation. The
nature of the Navy requires personnel to
reestablish these attributes every time they
The following section on personal financial
management gives you information you will need
to help your people keep their financial affairs
straight. It will acquaint or reacquaint you with
certain factual information. This information will
help you when counseling, advising, and training
your people on financial affairs. Some of the
information may be elementary to you, However,
because many young Navy members often do not
grasp these facts, they get into financial trouble.
If you are thoroughly familiar with these basics,
you will be in a better position to help young
members with their financial management.
Keep in mind also, Navy Family Service
Centers offer confidential financial guidance to
Navy personnel. Encourage your people in need
of personal financial counseling to use the
counseling service provided by the centers. Direct
those needing legal or other advice to a legal
assistance officer or some other counselor who
can provide the needed advice.
Navy personnel usually manage their money
in one or more of the following four ways; each
has advantages and disadvantages:
1. Checking account
2. Savings account
CHECKING ACCOUNT. A checking ac-
count usually serves as the safest and the most
convenient and efficient way for people to keep
track of their money. A checking account is a
financial arrangement with a bank, savings and
loan association, or credit union for safeguarding
As persons need money, they draw or transfer
funds by writing a check. Persons can issue a
check payable to another person or to a company
to pay bills or to get cash. This easy-to-maintain
method conveniently helps people manage their
financial affairs. Navy members on shore duty
may authorize the Navy to deposit their paychecks
into a savings or checking account via the Direct
Deposit System (DDS). If assigned to sea duty,
they can use the allotment system to have their
pay deposited in a checking or savings account.
The following are some of the advantages of
the DDS and allotments:
Personnel dont have to wait in long
payroll lines to cash a paycheck.
Pay goes directly to a set account even
when personnel are on leave or temporary
Personnel can write checks on payday with
the assurance that their pay is in the bank.
Personnel have access to pay when away
from their home stations by the direct
deposit of their paycheck into a checking
Personnel can mail checks to pay bills.
Personnel do not have to buy money
In case of a lost or stolen wallet, persons
do not lose their entire pay. The balance
remains safely in an account.
Canceled checks serve as receipts and
records of paid bills.
The proper use of a checking account
shows a persons financial reliability and
serves as a good reference for creditors.
SAVINGS ACCOUNT. One way for per-
sonnel to manage their money is to have a savings
account. Savings accounts draw interest, while
checking accounts sometimes do not. A savings
account is an excellent way to gather interest and
to keep from spending money.
CASH. Once personnel withdraw money
from a checking or savings account or cash their
paychecks, they operate on a cash basis.
Operating on a cash basis offers the advantage
of ready money but also the chance of theft or
loss of cash.
Operating on a cash basis results in low costs,
but it has some disadvantages. The use of cash
requires personnel to stand in lines to cash
paychecks and to buy money orders to pay bills.