An analysis of personal financial management training within the Department of the Navy

Abstract : In today's Navy, budget concerns are a part of everyday life. The Department of the Navy (DON), similar to many other government organizations, is more budget-constrained and faces an uncertain future, to some degree, with fiscal issues. With the real threat of government shutdowns, downsizing threats, furloughs, and possible changes in military retirement, DON personnel must utilize sound Personal Financial Management (PFM) to be prepared to face these future challenges. The purpose of this research was to determine the financial characteristics that lead to the financial fitness of DON personnel and to review the DON PFM training program s coverage of those financial fitness characteristics, so that DON leadership can provide the necessary resources to improve the financial fitness of DON personnel. This research project accomplished the following: 1) defined the term financial fitness and the 14 associated characteristics, 2) developed a financial fitness index, 3) analyzed previously collected data from the 2011 Financial Health Quick Poll survey to test the financial fitness characteristics, 4) provided recommendations to improve DON personnel s financial fitness, and 5) outlined areas for further research and follow-on PFM studies.