Northfield, MN –Save a little money each month, and it can be matched more than dollar for dollar. After two years, you will have a nest egg for a business, home, or education.
Last week, as a part of a women’s philanthropy group, we talked about Individual Development Accounts. They are available through a federal grant. In Minnesota, the mission is to enable people to escape poverty and achieve wealth through asset acquisition.
Saving a Little Adds Up
According to the U.S. Department of Health and Human Services:
Assets for Independence (AFI) enables community-based nonprofits and government agencies to implement and demonstrate an assets-based approach for giving low-income families a hand up out of poverty.
AFI projects help participants save earned income in special-purpose, matched savings accounts called Individual Development Accounts (IDAs).
Every dollar in savings deposited into an IDA by participants is matched (from $1 to $8 combined Federal and nonfederal funds) by the AFI project, promoting savings and enabling participants to acquire a lasting asset.
AFI project families use their IDA savings, including the matching funds, to achieve any of three objectives:
- acquiring a first home;
- capitalizing a small business; or
- enrolling in post secondary education or training.
Additionally, all AFI projects provide basic financial management training and supportive services, such as
- financial education on owning and managing a bank account or a credit card;
- credit counseling and repair;
- guidance in accessing refundable tax credits, and
- specialized training in owning particular assets for the long term.
AFI’S are administered by non-profits. For more information, check out the federal fact sheet.
Photo Source: Colors in B & W
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