Training Circular TC 21-7 Personal Financial Readiness and Deployability Handbook August 2003

This training circular is designed for soldiers in the active component (AC) and the reserve component (RC) (which includes the Army National Guard (ARNG) and the United States Army Reserve (USAR). It explains the Army's pay system and answers questions concerning basic financial matters. At the end of each chapter there are practical exercises covering the material in the chapter. Chapter 8 contains answers to all of the practical exercises. This training circular will help soldiers understand the military pay and travel systems, spending and saving, investments, and, most importantly, assist soldiers in preparing for financial readiness--in peacetime and during any type of deployment. Remember that this is a guide to be used by all soldiers. Chapter 1 explains the monthly pay and allowances soldiers are entitled to as well as the monthly deductions from their pay. These deductions include taxes as well as voluntary deductions such as allotments and charitable donations. This chapter gives an overview to all soldiers on how the Army pay system works, what entitlements soldiers receive, how soldiers receive their pay, and programs offered for retirement. Chapter 2 outlines the entitlements for Active Component (AC) and Active Guard/Reserve (AGR) soldiers on active duty and answers specific questions about individual Leave and Earning Statements (LESs), the mid-month Net Pay Advice (NPA), and additional entitlements for deployed soldiers. Chapter 3 outlines the entitlements for RC soldiers and answers questions about entitlements, individual LESs, the mid-month NPA, and mobilization allowances. Chapter 4 explains travel pay, how to file travel claims and shows block by block how to complete a travel voucher. Chapter 5, which is probably the most important chapter of this circular, tells soldiers and their families how to prepare for deployment. Chapter 6 explains credit and banking services as well as offers practical advice on establishing and utilizing credit and various banking services. Chapter 7 covers budgeting techniques and general information on investments. The final chapter, chapter 8, contains the answers to the practical exercises, which are located at the end of each chapter. Appendix A is for unit commanders. It outlines differences in the AC and RC pay systems and provides an excellent training tool for Commanders' use when introducing new soldiers to the Army pay system. This publication uses both narrative and question-and-answer formats to present information. Read each question as if you were asking it yourself. Review the answers and if you come across an answer you do not understand or if you have further questions, which are not answered in this circular, talk to your chain-of-command. If your leaders don't know the answer, they will assist you in getting the right answer. You are encouraged to read this entire publication and complete the practical exercises at the end of each chapter. After completing the exercises, keep this circular handy as a reference. The proponent for this publication is the U.S. Army Finance School.