| A growing number of welfare experts recognize the need to support families in their exit from poverty by encouraging the accumulation of wealth and assets, as opposed to maintaining a set level of income. IDAs are matched savings accounts designed to help low-income and low-wealth families accumulate a few thousand dollars for high return investments in education or job training, homeownership, or micro enterprise (small-business start-up). |
| IDAs are designed to increase savings and investments for the working poor, welfare recipients, and citizens teetering on the edge of life-long poverty. Just as the GI bill provided hundreds of thousands of families the opportunity to acquire a home and enter the middle-class, the IDA is a tool that can help low-income citizens strive toward their dream of leaving poverty for good. |
| How do IDAs work? |
| An IDA account is a savings account established at a local financial institution under a qualified individual's name. That individual must meet IDA program acceptance criteria (under 200 percent poverty, earned income, etc.), complete a financial management course and training related to their asset goal, and save money toward their future dream over a period of between six to thirty-six months. |
Once they have completed the program, their savings of up to $1,000 is matched by the Michigan IDA Partnership (MIDAP) at a ratio of 3:1 for a home purchase and 2:1 for post-secondary education/job training or to start or expand a small business. IDAs help low-income families plan a path out of poverty and help create economic stability in their lives to remain self-sufficient.
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Is this a give-away program?
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| No. An IDA creates a system where the participant is the primary investor and producer in attaining their goals. Community resources, both private and public, match their savings only after the individual has met their savings goal, and completed training and learning commitments. |
Contact Michigan IDA Partnership
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For information on IDAs in Michigan please visit the Michigan IDA Partnership or contact:
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Michigan IDA Partnership
c/o Oakland Livingston Human Service Agency
196 Cesar E. Chavez Avenue
Pontiac, MI 48343
Phone contact 248-209-2691 or 248-209-2790
Email contact: heidih@olhsa.org or susanm@olhsa.org
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