Adult Savings (IDAs)
Individual Development Accounts (IDAs) are special savings accounts that match the deposits of low- and moderate-income savers, provided that they participate in financial education and use the savings for targeted purposes. IDAs are most commonly used towards postsecondary education, homeownership or capitalizing a small business. Research demonstrates that these accounts make families more financially secure and communities more stable. Funding for local IDA programs comes from a combination of federal (through the Assets for Independence Act) and state governments, foundations and the private sector. IDA program administrators can partner with nonprofit service providers to interface with accountholders. Service providers manage outreach and recruitment, data collection and administration of individual accounts, and also provide financial education training, budget and credit counseling, and asset-specific classes.