Individual Development Accounts (IDAs) are emerging as one of the most promising tools that enable low-income and low-wealth American families to enter the financial mainstream. IDAs are matched savings accounts that enable low-income families to save and build assets.

Based on the idea that all Americans should have access to the structures that subsidize home ownership and retirement savings, IDAs encourage savings efforts among the poor by offering them matching funds for their own deposits. 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. These matched savings accounts are similar to 401(k) plans and other matched savings accounts but can serve a broad range of purposes.

The South Dakota IDA Collaborative is a joint venture between South Dakota’s community action program organizations, the South Dakota Community Foundation and the Northwest Area Foundation. Individual Development Accounts can assist individuals and families with the establishment of savings accounts. These accounts require a monthly financial commitment from the participant, with the funds being matched by the South Dakota IDA Collaborative on a two to one basis.

The IDA concept is more than establishing a pattern of saving. The program focuses on financial education, home ownership counseling and business planning long before the savings can be spent. The South Dakota IDA Collaborative is designed to assist nearly 200 South Dakota families over the next three years. For more information, go to www.sdrei.org and look under Opportunity Roundtable.

2007 AUTUMN REPORT
	Opportunity Dialog focuses on action plans
	Smart communities follow 7 steps to success
	New IDA concept helps low-income families save
	Opportunity Roundup provides nationwide info links
	Let’s be proud to tell our South Dakota stories
	Pilot communities selected for CVAC