International perspectives on assett building. April 4-6,2002, Windsor, Ontario, Canada

Individual Development Accounts (IDAs) are a policy tool to encourage and enable low-income families to build up their assets and achieve economic security. Much of the current support for asset-building policies for the poor can be attributed to the steady proliferation of IDA programmes across the USA. IDA are dedicated savings accounts for working people that can be used for purchasing a first home, for acquiring additional education or job training, or for starting up a small business. Other uses - such as retirement, home repair, computer or automobile purchase - are sometimes permitted. When individuals deposit a portion of their earnings, private or public partners match the sum, dollar for dollar, or even more generously, in some cases. IDAs are normally operated by community organisations in targeted localities where there is limited access to financial services and where people have little experience of financial management. The accounts are held in local financial institutions.
Participants in the programme must attend courses on money management and other financial matters. Additionally, all participants receive economic literacy training, which helps them to clean up their credit, establish a budget and savings schedule and manage their money in the long term. Use of the savings accrued in IDAs is usually restricted to four areas: home ownership (down payments and legal costs), home renovation and repairs, micro-enterprise start-up and post-secondary education.

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