What is an Individual Development Account or IDA?

Individual Development Accounts or IDAs are a tool to help you plan for your future. They are dedicated, restricted savings accounts designed to help people to buy a home, start a small business or get a post-secondary education. KDVA's IDA Program is funded with private and government funds.

How does the IDA program work?

You open a special savings account at a bank, and every $1 you save is matched with $2. You must save at least $20 a month. The maximum amount you can save is $2,000 of your earned income. Participants who make the most of this opportunity will receive $6,000. All participating banks have agreed to waive fees and minimum balances requirements.

What are the requirements?

You must have earned income. If you receive disability, you can participate only by saving money you earn in addition to your disability income. All participants are required to stay in the program for at least 6 months and no more than 3 years. All participants are required to attend financial skills building workshops to learn how to save, budget and invest wisely. You also must participate in monthly meetings with a case manager for at least one year and quaterly meetings after that. Eligibility is determined by income.

What are the benefits of an IDA Program?

*You can save money faster than you would be able to on your own because of the 2 for 1 match.

*You will attend financial skills building workshops to learn how to manage money and credit.

*A case manager will help you build credit and / or address credit problems. He / she also will connect you to other programs that help students, first-time homebuyers and people who want to start small businesses.

Why is asset building so important?

Asset building is an anti-poverty strategy that helps low income people move toward greater self-sufficiency by accumulating savings and purchasing long-term assets. The theory behind this approach is that helping people purchase an asset, as opposed to simply increasing their income, provides stability that may allow them to escape the cycle of poverty permanently. Assets such as a home, education or business gain value over time. They are a pathway to life-long independence and security.

Assets help individuals achieve their career and personal goals by giving them a foundation to build upon.

Income guidelines for IDA program

A client is eligible to participate in the Assets for Independence (AFI) program if her household income is TWICE the federal poverty level for a given family size.