Financial Literacy

Financial Stability Programs

Individual Development Account Program

An Individual Development Account (IDA) is a matched savings account designed to help families of modest means establish a pattern of savings and ultimately purchase a “qualifying asset.” A qualifying asset is defined as an asset that is likely to return substantial long term benefits like security, stability and an opportunity to increase income. Qualifying assets include:

  • A First Time Home Purchase
  • Post Secondary Education
  • Capitalization of a Small Business

Participants save a portion of their earned income, and the money deposited by the participant is matched 3:1, with a maximum match amount of $4,000.  In other words, an individual could potentially save $1,333 and receive matching funds of $4,000.
Other IDA Program Components include:

  • Financial Literacy Education
  • Case Management and Peer Support
  • Asset Specific Training
  • Post Purchase Follow Up

Participants who complete the IDA program acquire more than their asset. They develop solid money management skills, gain confidence in their abilities to meet short and long term goals, maintain positive savings habits, and achieve a level of economic security not previously realized. As a result, those who have successfully completed the program are still thriving in their new homes and businesses: in fact, since SSCAC began offering the program: 8 families have purchased homes, 5 have capitalized small businesses, and 2 have started or continued post secondary education.  Please see below for examples of recent SSCAC IDA participant success stories.

Eligibility
To be eligible to participate in the IDA program, you must have assets worth $10,000 or less and meet one of the following criteria:

  • Receive Temporary Assistance to Needy Families (TANF) funds / Transitional Assistance for Families with Dependent Children (TAFDC), or
  • Qualify to earn the Earned Income Tax Credit, or
  • Make less than 200% of Federal Poverty Level

The program is funded by the federal Assets for Independence Program, the Massachusetts Department of Housing and Community Development, and private contributors.

For more information about the IDA program, please contact 508-747-7575 x6255.

 

SSCAC IDA Participant Success Stories

 

Success Story #1

This individual participated in the IDA program for several years while she paid down debt, increased her credit score and saved money towards the purchase of a single family home.  In addition, she completed a first time home buyer’s class through the Plymouth Redevelopment Authority. She is a single mother of two children who were ages 12 and 9 at the time of her successful completion of the program.  Upon her entry into the program she was earning approximately $22,000 and receiving approximately $17,000 in child support annually.  Because she maintained her employment throughout the program, her earning increased about 3% per year.  She received a fixed rate 30 year mortgage through a conventional bank, which enabled her to purchase her home.

Success Story #2

This individual also participated in the IDA program for several years while she saved money for a down payment on a home and for her IDA match funds, and repaired her credit.  She took the first-time home buyer’s program through South Shore Housing and leveraged funds from the Marshfield Housing Partnership to be used as a down payment.  During her participation in the program, she changed fields, moving from a job in education to one in customer service.  As a result, she increased her income substantially from approximately $23,000 to close to $50,000 annually.  She is a single mother of two children with a bachelor’s degree and several master level classes under her belt.  As a result of her participation in the IDA program, she was able to remain in the town of Marshfield. This was crucial as Marshfield is the location of her support network for her two young children.

Success Story #3

This couple each opened an IDA account and participated in the program for 2 years while they reached their required savings amount. They met with a representative from the Massachusetts Small Business Development Corporation to develop a business plan for a home-based child care business. This small business will provide a steady and sustainable income for this family with 3 young children.

Success Story #4

This single mother participated in the IDA program for approximately 3 years while she saved money for her son’s college education at Bridgewater State College. Because she had adopted a child the same age as her birth son, she had two boys entering college at the same time. Her son at BSC was the recipient of the Abigail Adams award for achieving high scores on his high school MCAS tests. This also helped defray the cost of his college education.