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Welcome Welcome Individual Development Account Individual Development Account

(IDA) Program(IDA) Program

(Your Agency)(Your Agency)

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• Research has shown that even Research has shown that even families with the most limited families with the most limited incomes can and will save , when incomes can and will save , when given the proper support and traininggiven the proper support and training

• Saving money makes an investment Saving money makes an investment into your future possibleinto your future possible

• An IDA can provide match dollars toAn IDA can provide match dollars to make it happen now!make it happen now!

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What is an IDA? What is an IDA?

Buying a Home

Starting or Expanding a Business

Higher Education or Job Training

Matched Savings Account for:

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Buying a Home:

$3 for each $1 you save

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Home OwnershipHome Ownership

• Use IDA for down payment and/or closing costs

• Must be your primary residence• Required to attend home

ownership training program

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Starting or Expanding a Starting or Expanding a Business:Business:

$2 for each $1 you save

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Business DevelopmentBusiness Development

Starting or expanding your business in accordance with a sound business plan (match checks are only written to business entity).

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Higher Education/Job Higher Education/Job Training:Training:

$2 for each $1 you save

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Education/TrainingEducation/Training

• Accredited Vocational or Technical Training Institution

• Community College• Four-year College or

University

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Maximum SavingsMaximum Savings

Asset YourSavings

Match Total

Home $1,000 $3,000 $4,000

Business $1,000 $2,000 $3,000

Education $1,000 $2,000 $3,000

Maximum savings to be matched $1,000.

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Participation Participation RequirementsRequirements

1. Agree to save a minimum of $20 per month from earnings

2. Agree to complete financial management classes and asset-specific training

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AndAnd

3. Agree to review and address any credit issues that might inhibit success

4. Agree to meet with

program staff

for further training opportunities,

and to discuss your progress.

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Our IDA Program Provides:

• Financial Management Education

• Training related to your savings goal (asset)

• Credit Counseling, if needed

• Account Statements

• Confidentiality

• Individual Assistance

• Match Funds

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Financial Management Financial Management EducationEducation

1. Goal Setting & Making Plans

2. Household Budgeting

3. The Importance of Credit Standing

4. Savings & Interest

5. Working with Financial Institutions

6. Succeeding in your Asset Purchase

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Asset-Specific TrainingAsset-Specific Training We will help you learn:We will help you learn:Buying a Home:

How to prepare for ownership, pre-qualification requirements & mortgage types

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Starting a BusinessStarting a Business:: We will help you learn:We will help you learn:

How to prepare a Business Plan, Marketing Plan & Financial Statements

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Higher Education/TrainingHigher Education/Training:: We will help you learn:We will help you learn:

How to take advantage of career planning, scholarship opportunities & life experience credits

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Are You Income Eligible?Are You Income Eligible?

Family Size

Income Level

Family Size

Income Level

Family Size

Income Level

1 $20,800 4 $42,400 7 $64,0002 $28,000 5 $49,600 8 $71,2003 $35,200 6 $56,800 Ea. Add'l $7,200

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What if someone in my family What if someone in my family is receiving some form of is receiving some form of

public assistance?public assistance? Disregarded as an

asset for Family Independence Program assistance, Food Stamps, and State Emergency Relief

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Will an IDA affect my SSI?

This is a federally-funded IDA program that allows you to have an IDA account, and therefore assets, without losing your benefits.

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What if my income goes up, or I What if my income goes up, or I become unemployed?become unemployed?

• Certified eligible at the time you apply

• Can remain in program even if income increases or become unemployed

• Must continue to follow the program guidelines including saving regularly

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Where does the match Where does the match money come from?money come from?

The match money comes from the federal government, MSHDA and private donors interested in promoting greater family self-sufficiency.

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Do the matching funds get Do the matching funds get deposited into my account?deposited into my account?

Your funds:• Kept in a joint account at a

participating financial institution• Monthly statement

Matching funds:• Released to vender when asset is

purchased• Quarterly statement show individual

savings plus matching money earned

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Can the account be used for other purposes?

The IDA savings can only be used for homeownership, small business or post-secondary education and training. These investments will help increase you and your family’s financial assets and increase in value.

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How long can I save?How long can I save?Depending on when you join, you may have up to 36 months to save your money.

Purchases must be made by end of grant or match dollars will be forfeited

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What if I miss my monthly deposit?What if I miss my monthly deposit?

• Purpose of IDA is to help establish regular pattern of savings.

• May be terminated from program if fail to make deposits for 3 months

• Must meet with Staff if you miss 2 deposits

• If terminated, all match money is forfeited

• Call and let us know what is going on!

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Can I make emergency Can I make emergency withdrawals?withdrawals?

• Not allowed in first 6 months

• Only with permission • Must increase monthly

payment to repay in one year

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What happens when I save What happens when I save enough to buy my asset?enough to buy my asset?

1. Meet with us

2. Review participation & check that requirements were fulfilled

3. Submit withdrawal request & supporting documents

4. Checks payable to vendor (allow up to 4 weeks)

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Are your goals realistic??? Are your goals realistic???

• Save only what you can afford to save monthly

• Home prices on average• Thought about school?

Average costs of college

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Can I really save Can I really save $20.00???$20.00???

New DVD,

Fast Food,

Movies,

New shirt,

Manicure…

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How do I open an account?How do I open an account?• Attend an orientation session • Fill out an application and wait

for approval (credit report pulled)• Call and make an appointment for

enrollment• Sign Participant Savings Plan

Agreement & Forms• Open up your approved IDA at

partnering financial institution. This is your program start date.

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Approval is based upon…

• Income eligibility (See handout)

• Work history

• Personal statement

• Your commitment to work on repairing any credit issues

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<<<AGENCY NAME>>> thanks you for attending this evening. We hope you found

it worthwhile.

If you have any questions after leaving here tonight, please call <<<CONTACT

NAME AND PHONE #>>>

Thank You