Do you know about IDA programs? Free money given to you by the government.

[coffeelover]

If you don't know about IDA's then you should.

They are savings accounts  that you put money into monthly and then that money is matched once you've reached the set goal.
The goal is usually 1000, the IDA programs near me all match 200%. So when I cash out my money I'm getting 3000!
I called the program closest to me and this is what I was told.

They give a maximum of 4000 per family. So basically 2 people can do the program because we would each get 2000 from it. Save for a minimum of 6 months, if in 6 months you reach the goal of 1000 they match it and then double it. So they give away a max of 2000 per person. The max allowable time to be in the program and save is for 3 years.

Again each IDA program is run by different rules, so yours may be different in your state/county.


Usually the savings are used for a house down payment, post secondary education, or starting a business. At least this is the allowable items from my local IDA program.

These things are legit and I'm telling you guys about them because a thread on reddit was posted about them yesterday. I was shocked that something like this is out there.
There are income qualifications.
For a middle class family of 7 people your income can be no more then 71600 a year gross. (this is in MI, so your mileage may vary)

Here's some links to explain the programs further.

http://cfed.org/programs/idas/

To find a program near you-  http://cfed.org/programs/idas/directory_search/


http://en.wikipedia.org/wiki/Individual_Development_Account

http://www.alternatives.org/ida.html

Here's the link from reddit that taught me about these programs
http://www.reddit.com/r/personalfinance/comments/2fxxp7/psa_student_teenager_lowish_income_get_up_to_9k/

[Cwadda]

I did some reading about this and I'll give my opinion...because it's a forum...and why not? Also, a quick note - I couldn't find anywhere that said the money is provided by the government. The money comes from local nonprofits and agencies of that nature.

There certainly seems to be a lot of value for the impoverished with these programs - allowing and encouraging the low-income folks to save up for a house, education, or business. That being said, I think it's very unmustachian for over-qualified people to even consider applying to the programs. And I'm pretty unsettled that this is even a possibility.

Being "temporarily poor" in college is one thing, but having generations of family under poverty is a whole different deal.

In the case of the couple on Reddit, completely unmustachian to keep it going for years after their income raises to 35K and eventually 60K.

Just my $.02. Curious to hear other forumers' thoughts on it.

[MarciaB]

Technically it's gov't money (federal) that gets funneled through a nonprofit. We have them here in Oregon and I'm familiar with the process.

There are income tests and asset tests - this program/money is for the truly disadvantaged. That being said, it's a terrific program and can really help someone ramp up savings. Matched savings ($2 for every $1 you save) is hard to beat! And as the OP says, the funds can be used for a business start, for higher education, or towards a home purchase.