Program Description
An Individual Development Account (IDA) is a matched savings account designed to help participants save for homeownership, small business development, or postsecondary education. The two-year program includes the following components:
Matched savings
Participants commit to a monthly savings goal of
$25-$75 per month for at least one year, with the option to save for
a second year. Compass provides a 3:1 match for participant savings.
In addition, participants are required to deposit 10% of their federal
tax refund into their IDA.
Basic financial education and training
Financial education is the
centerpiece of the Compass IDA program. The core curriculum covers
budgeting, banking, savings, credit repair, and other personal money
management issues. Expert volunteers from financial services companies
also provide in-depth workshops on topics such as taxes, insurance,
investing, saving for college, and talking to children about money.
Financial coaching
Through a unique financial coaching model, Compass
seeks to equip participants with the knowledge, skills, and confidence
required to sustain long-term financial stability. With support from
financial services professionals and from local community organizations,
participants receive individual support in achieving their goals.
Asset purchase
At the end of the two year savings period, participants
can apply their savings toward an approved asset purchase, including
homeownership, small business development, or post-secondary education.