IDA, or Individual Development Account, is going to be my new savings vehicle, and a truly wonderful one at that. What is an IDA?
Individual Development Accounts (IDAs) are matched savings accounts that enable low-income American families to save, build assets, and enter the financial mainstream. IDAs reward the monthly savings of working-poor families who are trying to buy their first home, pay for post-secondary education, or start a small business.
For every $1 I save, I can earn $2 in matched funds. I can save up to $2000 of my own funds and earn up to $4,000 in matched funds, giving me $6,000 to use toward college. Is that awesome or what?
I’ve wanted to go back to college to finish my Bachelor’s degree, but with two small kids and quite little income, it didn’t seem to be within reach. In comes IDA, to the rescue! Between that and the Pell Grant, I should be able to cover my tuition and books for the two years of schooling that I have left without needing to take out student loans. If I take classes when Peanut is in kindergarten, I’ll only need to find childcare for Sweet Pea, who will be old enough to attend the university’s childcare program.
I’ll be saving $2,000 of my $6,000 goal in my IDA, through Opportunity Fund in San Jose, and starting in the fall toward a BS in Business Management. I’m in the application process and will be taking a financial management course as part of the program; I’ll be sure to post what I learn.
I discovered IDA on the blog Consciously Frugal, and I can’t tell you how grateful I am to have found it.