Attention residents of Alleghany and Ashe County! We can help you get the money you need to:

Purchase your first home.
Continue your education beyond high school.
Start a small business.

This is your opportunity to turn your dreams into a reality!

Individual Development Accounts are dedicated savings accounts, similar in structure to Individual Retirement Accounts (IRAs), which can only be used for purchasing a first home, education or job training expenses, or capitalizing a small business. IDAs are typically managed by community organizations and accounts are held at local financial institutions. Contributions for lower income participants are matched using both private and public sources. Additionally, all participants receive economic literacy training that includes workshops like cleaning up one's credit, setting up a budgeting and savings schedule, and other basics of money management.

Current income maintenance policy raises people to the poverty line, leaving them only one sickness, one accident, or one divorce away from poverty. While providing food, shelter, and clothes to low-income families is imperative, this aid alone will not produce viable escapes from poverty. Washington University Professor Michael Sherraden notes, "income may feed people?s stomachs, but assets change their head"

How do IDAs work?
IDAs are not simply a theoretical concept - IDAs are a powerful tool used by community organizations throughout the United States. IDA demonstrations are underway nationwide, stimulating participants' savings rates, building their assets, and connecting these individuals to the economic mainstream. Currently, private foundations and the public sector fund most of the demonstrations. Ideally, in the future, IDAs will be funded by a combination of private and public sources. The following four-step process documents how an IDA participant moves through a typical IDA program.

STEP 1 - Introduction and Orientation
The participant, after hearing about an IDA program through various marketing resources or by referral from another agency, attends an IDA orientation session. The orientation explains the importance of asset-building, how IDAs work, introduces participants to various asset-building options, demonstrates how assets transform lives, stresses the importance of continued savings, and demonstrates how savings can compound and accumulate over a lifetime. Some existing programs may also invite current or recent graduated participants to share their experiences participating in the IDA program.

STEP 2 - Opening Accounts
After the orientation session, the participant is then screened for eligibility. Upon approval, the individual opens an IDA savings account with the program's cooperating financial partner (bank or credit union). The participant then signs a contract expressing her commitment to save monthly (or more often, if she chooses). At the same time, the IDA program's Management Information System (MIS IDA) tracks how much each participant has saved, how much in matching funds they have earned, and the interest they have accumulated. The participant will then receive a monthly statement that will include her current level of savings, matching contributions, and the interest earned in her IDA account.

STEP 3 - Economic Literacy and Training
Shortly after the participant enrolls in the IDA program, she meets with the IDA program staff to develop an asset acquisition plan. During the first step I this process, the IDA program conducts a review of the participant's credit, where if necessary, they will help her establish or clean up her credit. Second, the staff discusses income and consumption patterns of the participants' household and works with her to develop a saving schedule based on how much her household can afford to save each month.

The participant then attends mandatory economic literacy sessions where she follows a curriculum specifically designed to teach the vital concepts necessary for success in today's economy (such as banking, investing, and money management skills). The participant will also receive asset-specific training in the area of her choice. Additionally, during the asset accumulation process the participant will receive one-on-one counseling when she has questions concerning financial management or how the IDA program works. Many programs have also established weekly or bi-weekly support groups where they discuss IDAs with fellow participants and with "graduates" of the IDA program.

STEP 4 - Withdrawal, Purchasing Assets, and Beyond
After the participant has accumulated adequate funds in her account (savings + match + interest) to purchase the asset of her choice and has completed both economic literacy training and counseling in the specific asset area in which she will use her IDA, she is ready to make a withdrawal. The participant fills out the withdrawal forms that state the asset she wishes to purchase (a first home, for example). The IDA administrator then reviews her request and ensures the legitimacy of the participant?s chosen vendor. After approving the withdrawal request, a check is written to the asset vendor by the IDA administrator at the same time the participant writes her check to the vendor. After the participant uses her IDA funds to purchase a home, for example, she continues to save for her own and her family's future.