Asset Accumulation through Individual Development Accounts
The purpose of our project was to assist people with mental illnesses in accumulating financial assets for school, employment, or housing goals that promoted their economic independence. Assets were developed through special savings accounts called Individual Development Accounts. These accounts are geared to the needs of lower income individuals who are working and able to save limited amounts of money. Under the federal IDA program, an individual's savings are matched first by a non-federal source (such as a bank or philanthropic foundation), and second by the federal government using a specific matching formula. Individuals' contributions to IDAs must come from earned income and must be used to help finance the purchase of a first home, small business capitalization, or post-secondary education. Participants also receive financial education and counseling. Under the federal program, savings accumulated in an IDA are not counted as assets when assessing SSI/DI eligibility and cash payments, thus removing this disincentive to asset accumulation faced by people receiving public disability income. Few IDA programs have been targeted to individuals with disabilities, and this project was the first designed to reach adults with psychiatric disabilities.
Our project was implemented at the Thresholds, The Asset Builders Community Development Corporation coordinated access to the banking institution and the federal match for this project. The Rebecca Susan Buffett Foundation provided the local match. We found that savers with mental illnesses can develop assets and reach their financial goals when receiving integrated financial education and clinical support.
Access an article describing our project.
Download a free financial education curriculum.
Our project was implemented at the Thresholds, The Asset Builders Community Development Corporation coordinated access to the banking institution and the federal match for this project. The Rebecca Susan Buffett Foundation provided the local match. We found that savers with mental illnesses can develop assets and reach their financial goals when receiving integrated financial education and clinical support.
Access an article describing our project.
Download a free financial education curriculum.