What is an IDA?
Individual Development Accounts: An Innovative Approach to Replacing Poverty with Prosperity
Individual Development Accounts (IDAs) were created to encourage savings, investment and asset accumulation among moderate income and working families. Assets – such as a home, a college education or a business – enable low-income families to move into the economic mainstream.
IDAs are matched savings accounts. People who save through an IDA can typically use their savings to:
- Buy a first home
- Pursue a college education
- Start or expand a small business
IDA holders are required to complete a financial education program. Most IDA programs are offered through local nonprofit organizations, which also provide financial education. IDA savers learn to develop and manage a household budget, manage debt, set financial goals and achieve them.
To learn more about IDAs, call us at 505.217.2747.