A Soldier's pay check can be a confusing document to read. Unlike a civilian pay check there are lots of notations, deductions or allotments, and special pay for which to account. Such information includes what financial institution the pay was automatically deposited to, in what account and on what day. It will also explain the different types of military pay that make up a military pay check.

A Soldier joining the Army is entitled to a wide assortment of pay and allowances. Although not every Soldier is entitled to every type of pay, here is a list of the more common types:

Basic Pay: Everyone gets basic pay, and it is the largest part of a Soldier's salary. The amount of basic pay is determined by the pay grade, and the length of time the Soldier has served.

Basic Allowance for Subsistence: This is a nontaxable allowance for food given to Soldiers to help pay for the cost of meals. Enlisted Soldiers who eat in military dining facilities for free may not receive this allowance, or they may receive a partial allowance.

Basic Allowance for Housing: This is a nontaxable allowance given to Soldiers to help with most, but not all, out-of-pocket expenses incurred as a result of living in off post civilian housing. The amount varies by pay grade of the Soldier, the location, and whether or not the Soldier has Family members.

Clothing Allowance: Enlisted members receive a yearly allowance intended to help them maintain and, when needed, replace their uniforms. Officers receive an initial allowance to purchase their military clothing when they join the Army, but they do not receive a yearly allowance.

Miscellaneous Pay and Allowances: A Soldier may receive many other allowances depending on his or her job and duty location. Some examples include language proficiency pay, aviation career incentive pay, health professional pay, hazardous duty pay, and Family separation pay.

A Leave and Earnings Statement is the Soldier's pay slip, or pay statement, which Soldiers can choose to view online through the Internet or to receive in printed form. The LES is prepared at the end of each month and shows the pay the Soldier earned during the preceding month and any changes that might affect future pay.

In addition to the basic pay, the LES also shows any allowances for food, housing, clothing, and any special pay. It shows what was taken out for automatic deductions, for example taxes, and for other automatic deductions—or allotments—like for the dependent dental program, or insurance. Finally, it shows how much "leave" has been earned.

Every Soldier, from brand new recruits in their first days of training to the most senior general, earns the same vacation time, which the Army calls "leave." Compared to many civilian jobs, the military benefit of earning 30 days of leave a year is terrific. In general, a Soldier serving on active duty earns two and a half days of leave each month, or 30 days a year.

The leave that a Soldier has saved up is called a "leave balance," and this is shown on the monthly LES.

Unlike in many civilian jobs, Soldiers do not have a specific number of sick days for which they are paid. Instead, if medical personnel determine that a Soldier should be recovering at home—typically referred to as quarters—or be in the hospital, all those days are regular pay.

Also, from time to time, the Soldier's unit may declare what is called a "training holiday." This is a free day off that recognizes extra work done, perhaps by training through a weekend. These days are not counted as leave.

The LES also shows into what account, at what bank or credit union, the pay was deposited. The Army uses an automatic pay deposit system that places your Soldier's pay into your bank account twice a month. In this way he or she always gets paid—whether he or she is in the field, deployed, or at home—and there is no risk of the check getting lost in the mail.

One of the many benefits afforded Soldiers is the opportunity to purchase very low-cost life insurance. Servicemembers' Group Life Insurance provides up to a maximum of $400,000. A Soldier is automatically covered for this maximum amount unless a lesser amount, in increments of $10,000, is chosen in writing. A Soldier may even decline SGLI altogether, but this decision is so important that the Soldier must also do that in writing. The payment is deducted automatically from the Soldier's pay each month. Soldiers with Families almost always select coverage in the maximum amount.

Spouses and children are eligible for Family SGLI. Coverage for a spouse is automatically $100,000 unless a lesser amount, in steps of $10,000, is chosen. Each child is covered for $10,000 for free.

The Army Community Services Financial Readiness program offers classes and counseling on money management, credit, financial planning, insurance, and consumer issues. These classes are designed to help Soldiers and their Families become self-sufficient, reduce indebtedness, and lessen the need for emergency financial aid.

All new Soldiers who are reporting to their first duty station are required to attend a class in financial readiness. Spouses are encouraged to attend to make sure you both have the same understanding of financial matters.

In addition, the Army has a partnership with the Better Business Bureau to help Soldiers and Families become smart consumers and resolve consumer complaints.

For more information on finances, please visit: Army Banks.