Individual Development AccountsUnited Way believes that asset building tools and strategies are critical in helping low-income families (200% or less of the federal poverty rate) out of poverty and into the financial mainstream. UWRV is one of many community partners in the Roanoke Valley Individual Development Accounts (IDA) program administered by Total Action against Poverty (TAP). United Way has provided $120,000 in matching funds during the past four years of the program (2003-2006) and has renewed its commitment to invest $60,000 for another two years (2007-2008). IDAs help families and individuals with limited incomes save for things that will help build their futures. For every $1 a program participant saves, an additional $2 is added to their savings account toward asset purchase. The program will match up to $1,300 saved by the participant. The savings and match money are to be used for any of these purposes:
In addition, each participant receives one-on-one counseling, financial literacy training and asset-specific counseling. Participants are instructed on how to create a monthly budget and work towards their savings goals. Since the program started in 2001, 165 individuals have enrolled with savings of at least $20 monthly. Of those, 75 have completed the program with an asset purchase. 43 have become first time homeowners, 20 have started or expanded a small business, and 12 have continued their education or sought additional job skills. Currently, 14 participants are enrolled in this matching savings program. Last year, 10 met their savings goals and purchased homes, started businesses, or pursued higher education. Out of the 30 IDA graduates who have been out of the program for more than a year, 80% continue to maintain their homes and businesses, and 2 have even completed their college degrees.
For more information, please contact Teffany Henderson at 345-6781 ext. 4408 or email teffany.henderson@taproanoke.org |
Impact Areas