Thrifty TipsThrifty Tips

Make your clothes

last longer.

Federally insured by the National Credit Union Administration.

REACHING MY SUMMITThe Summit Federal Credit Union's website now has a section devoted

to teens and young adults. Search Reaching My Summit at summitfcu.org for blog posts to help you become financially independent.

SUMMER

2020

Rather than getting rid of damaged

clothes, learn to sew holes, repair fallen

hems and reattach buttons.

Mend.Mend.

This will minimize fading, especially for dark fabrics.Turn them inside-out when washing.Turn them inside-out when washing.

Sometimes we wash clothes that aren’t really dirty. This not only wears them out more quickly, it also wastes water. If you’ve only worn something once and it doesn’t smell or look dirty, see if you can wear it another time or two before washing.

Avoid over-washing.Avoid over-washing.

Hanging knits in a closet can stretch them out. Keeping them on a shelf

or drawer will extend their lives.Fold sweaters rather than hanging them.

Fold sweaters rather than hanging them.

It’s best to purchase clothes that

stand the test of time. That way,

you’re not constantly getting new

items in order to replace last year’s

trendy ones.

Try to avoid fads.

Try to avoid fads.

The FIVE Money Principles You Should KnowLearning about financial responsibility is easier when

you keep these five words in mind.

1. Earn = Make money by working.

2. Save = Put away a portion of each paycheck for the future.

3. Protect = Keep your money safe from theft and scams.

4. Spend = Be responsible when making purchases.

5. Borrow = Get and use loans wisely.

Visit mymoney.gov for more information, resources and fun games about the five principles!

This sentence might help you remember them:

Every Sailor Prefers Strong Boats

Gross & Net What’s the Difference?

You’ve probably heard or read about gross and net income. But what do those words mean?😝

🥅Gross income is the sum of the money you earn before any deductions like taxes or retirement account contributions.

Net income is what you “take home” after all deductions.Figure out each of these people’s annual gross income and monthly net income.

Take note whether it is monthly or annual income that’s being asked for.Ann makes $2,400 a month gross

income. Each month, her employer deducts $200 from her paycheck

for taxes.Ann’s annual income: Ann’s monthly net income:

Phil makes $3,700 a month gross income. Each month, his employer deducts $300 from his paycheck for

his retirement account and another $450 for taxes.

Phil’s annual gross income: Phil’s monthly net income:

Carla makes $4,000 a month gross income. Each month, her employer

deducts $500 from her paycheck for her retirement account, $200 for her healthcare account and

another $500 for taxes.Carla’s annual gross income: Carla’s monthly net income:

I Have anIDEA!

the pros and cons of being an entrepreneurAn Entrepreneur is someone who sees a need that no other business is addressing, and who finds a way to fill that need, usually by inventing something new and/or

starting a new business. Being an entrepreneur is not for everyone! It often involves innovation, financial risk, a bit of unpredictability and a lot of hard work. However, it’s exciting, personally and professionally fulfilling and the rewards can be large.

See some of the pros and cons of entrepreneurship below.

Starting a business costs money and may involve finding investors or getting a loan. Keeping the business running costs money too. Those who are willing to risk significant debt are usually very sure of their idea and its ability to generate a profit, and they

have enough money to keep everything afloat. On the other hand, some people are completely against

the possibility of owing money or having their business fail after so

much investment.

Entrepreneurs often take on numerous roles at once rather than hiring people to do them. They may do sales, bookkeeping, cleaning the office and managing product

production all in the same day, for instance. Some people thrive on this variety, but others find it hectic.

ProYou’re the boss.

ConYou’re lots of other things, too.

Entrepreneurs have a lot to do (see above). That means they can spend a lot of time

working. Someone who prefers a more secure job with set hours and a steady paycheck might not like the amount of time or the unpredictable pay that

entrepreneurship can require.

ProYou set your own hours.

Con They tend to be long.

Starting a business costs money and may involve finding investors or getting a loan. Keeping the business running costs money too. Those who are willing to risk significant debt are usually very sure of their idea and its ability to generate a profit, and they have enough money to keep everything afloat. On the other hand, some people are completely against

the possibility of owing money or having their business fail after so much investment.

ProYou can make a lot of money.

Con You can also lose a lot of money.

Ann’s annual gross income: $28,800Ann’s monthly net income: $2,200

Phil’s annual gross income: $44,400Phil’s monthly net income: $3,250

Carla’s annual gross income: $48,000 Carla’s monthly net income: $3,500

Gross & Net

Answer Key: