I ran across a great program last week during my regular website travels.  I already shared it with my students because to me it is essentially free money.  I say essentially because there are requirements that go along with participating in the program and restrictions on how you can use the money you get from the program.  I think both the requirements and restrictions make the program that much more valuable for participants – they are the proverbial icing on the cake.   Participants in the program can receive up to $4,000 in match to their $2,000 savings.   This is a program worth hollering from the rooftops.  Well, I should say the North Dakota rooftops as this program comes from the North Dakota Community Action Partnership and is limited to North Dakota residents.

The program – Individual Development Accounts (IDA) – gives participants a two for one match of their money which can then be used to pay for college, buy a home, or start a business. Participants must have a job, meet asset and income guidelines, make monthly deposits to savings, and attend  financial literacy training.  There is no age limit to the program and it appears to be an opportunity for low income households as well.

This kind of program makes me happy.  What a great way to provide financial education, reward saving behavior, and further goals that can lead to greater financial stability.  I realize that $2,000 of savings over a two year period is an awful lot for folks living with a limited income – it amounts to about $85 a month.  I assume that the financial coursework which focuses on refundable tax credits as one of its coverage areas, teaches participants how to maximize things such as Earned Income Credit to help meet their long term goals.

Here is more about the program from North Dakota Community Action Partnership’s website:

Individual Development Accounts (IDAs) allow participants an opportunity to acquire a lasting asset after saving for an extended period of time. The three eligible assets are college tuition, a first home, or small business capitalization. These special matched savings accounts are designed to help families and individuals of modest means establish a pattern of regular savings, and ultimately, purchase a lasting asset of value that is likely to return substantial long-term benefits to its owner. Such benefits include security, stability, and opportunities for increased income.

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How Does an IDA Work?

Participants are required to save for at least six months, although most save money over the course of two years. At the end of the program every dollar deposited ino the IDA by the participant is matched by a combination of federal and nonfederal funds at a rate of 2:1.

In North Dakota, participants are able to save up to $2,000 for a match of $4,000. This means if the maximum amount is saved the participant earns $6,000 to use for the purchase of a first home, college tuition, or small business capitalization.

Throughout the savings period, participants are required to make monthly deposits into their IDA from earned income meaning that the participant is employed. Participants are also required to complete financial literacy training which is a critical component as it teaches skills such as: creating and following a budget, owning and managing a bank account or credit card, credit counseling and credit repair, and guidance on refundable tax credits such as the Earned Income Tax Credit. Additionally, participants are required to attend asset-specific training. This training is focused on the participant’s asset that they intend to purchase upon the completion of their IDA savings.

All Applicants Must:

1. Be a North Dakota resident
2. Be currently employed
3. Not have assets valued at more than $10,000 (excluding a home and one vehicle)
4. Meet the following 2013 income guidelines:

Family Size	Annual Income	Hourly Wage
1	$22,980	$11.05
2	$31,020	$14.91
3	$39,060	$18.78
4	$47,100	$22.64
5	$55,140	$26.51
6	$63,180	$30.38
7	$71,220	$34.24

*Add $8,040 for each additional household member

*Additional application requirements may apply

If you could benefit from this program – stop reading now and sign up!  If you know someone who could benefit from this program, please forward them the website address.  This is an opportunity for free money and a wealth of information that will make each dollar go further and work harder – need I say more?? 😉