Firsthand Experience 06 - IDA Program

Plains IDA Program

Plainview is one of the first rural locations with this program.

IDA stands for Individual Development Accounts which are savings accounts that are used for purchasing a home, starting a business, or for educational expenses.    This program enables people to save money, build assets, and enter the mainstream economy.  IDAs reward the monthly savings of people trying to save up to purchase a home, start a business, or pay for post-secondary education.  (Variants to these purposes sometimes include saving for home repairs, purchasing computers, cars, or saving for retirement.)    Each dollar a participant saves is matched by public and/or private sources.  Savings are usually matched at a 1:1 or 1:2 rate, and the deposits are kept in separate accounts.  Participants have certain prerequisites and requirements to meet,  such as taking financial education courses, etc.  In these courses, participants learn about banking, investing, and money management skills.  The IDA program is effective in that a participant saves with a financial institution that matches their savings to assist them in purchasing something, teaching them skills to learn about financial decisions and techniques, and showing them how to control budgets.  In short, Plainview is an excellent place for someone looking to settle down and purchase a house, start a business, or continue education at Wayland Baptist University.

Please see the two links listed below for more information.

http://www.covenantcapital.org/html/publicpolicy/ida_faqs.html

http://www.covenantcapital.org/index.html