Good Afternoon Everyone!
And Happy New Year to you all – here's hoping 2021 is better, safer and healthier for all of us!
My first question for 2021:
As part of the information that was presented during a Certified Financial Counseling training that I just completed, I ran across a reference to Individual Development Accounts. These accounts are intended to help someone purchase their first home, pay for college, start a business, etc.
The member's deposits into the account are supplemented by funds from grants which significantly boosts the balance in the account to help members reach their goals. There is also a financial literacy component that is part of this program.
A local non-profit in the DC area appears to support these accounts - https://www.hocommunitypartners.org/index.php/our-work/saving-for-a-better-tomorrow-individual-development-account-ida-program
We're considering adding this option as a new offering from FedChoice.
Does anyone happen to have any experience with these accounts both from the account opening and financial literacy perspectives?
Here's an article about how Dupaco and its foundation do this: CU and Its Foundation Leverage IDAs to Help Members Reach Their Dreams
Hope this is helpful!
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Thank you so much sharing this article. It was very inspiring to read how Dupaco Community Credit Union is utilizing Individual Development Accounts to assist members with achieving their goal of homeownership.
I've shared this article with others at FedChoice as we recently started a Foundation. But, like Dupaco, we would likely need to locate grant money elsewhere until we have enough funds at the Foundation to support this initiative.