IDA
Program
Angelita Hernandez and Gwendy Brown
Lenders for Community Development
Asset Building Through an IDA
I
D
A
stands for : Individual
stands for: Development
stands for: Account
A matched
savings
account
1. Provides money
management training
2. Helps you pay for College or
start your own business
Matched Saving Account
For every $1 you save, receive $2 in
matched funds
Save up to $2,000, earn up to $4,000
in matched funds
Do The Math
$2,000
(your savings)
$4,000
(matched funds)
$6,000
(total funds)
Part 1: Money Management
•
•
•
•
12 hours of free workshops on:
– Budgeting
– Saving and goal setting
– Credit building and repair
Held on evenings and
weekends
Free childcare and meals
provided
Spanish and Vietnamese
classes available
Part 2: Saving for your Goal
• Open a free IDA account, with
Citibank
• Save between $20 and $167 per
month
• Save every month for 1-2 years
• Enroll in automatic deposit service
from checking account
ZERO Risk With An IDA Account
• Your savings are always
yours: No penalties for
exiting the program
• Emergencies allowed
• 2,000 people have joined
since 1999.
Part 3: Investing in your Education
• Use money for post-secondary
education for yourself, your spouse
and your dependents.
• Eligible schools include:
– Vocational/technical schools
– Community College
– University and graduate school
• Start spending money after 6
months
• Access money for 2 years
Education:
Can I use IDA Funds for?
Yes
No
Tuition
Fees
Books
Supplies
Equipment
Room & Board
Student loans
Electronics
Car/transportation
Parking
IDA Savings Period: An Example
Sara starts saving in October 2007
She saves $100 per month.
October 2007
March 2008
September 2008
6 months
Sara
begins
saving
$100 per
month
Sara has saved
$600 and earned
$1,200. She can
now pay for her
school expenses
at Cañada
College.
Sara has
transferred to
SJSU. She and
now spends IDA
funds every
semester for
tuition, fees and
books.
September
2009
Sara has
spent all
$6,000 of her
IDA money
on school and
is on the way
to her
degree!
How To Qualify?
• Be 16 years or older
• Have earned income (and/or
CalWORKS)
• Speak English or Spanish
• Have “reasonable” credit
• Earn less than income limits (see
next slide)
IDA Income Limits-2006
Persons in
Family or Household
Gross
Income
1
$19,600
2
$26,400
3
$33,200
4
$40,000
5
$46,800
6
$53,600
7
$60,400
8
$67,200
For each additional
person, add
$6,800
Should I apply?
1. Do you (and/or your parents) work and
earn less than income limits?
2. Do you need money for school now or
plan to transfer in the next year?
3. Do you want to learn more about how to
manage your money and achieve your
financial goals?
If the answer is YES,
Please fill out an application
and sign up for a 1-on-1 appointment.
The 1-on-1 takes about 30 minutes, please bring:
• Photo ID
• Proof of income (2006 taxes for you and/or
your parents, or 4 recent pay stubs)
Questions?
Contact:
Gwendy Donaker Brown
408-516-4688
gwendy@L4CD.com
OR
Angelita Hernandez
408-516-4699
angelita@L4CD.com