Asset Accumulation Through Individual Development Accounts
Project Update 
Six people completed a financial education class taught by UIC staffers Jane Burke-Miller and Tina Carter that was adapted from a program developed by the University of Illinois Extension, and tailored specifically to the needs of people with psychiatric disabilities. This highly personalized, interactive course engaged participants in tracking their expenses, budgeting their incomes, and planning for savings. Following are a list of classes that each participant completed.
- Financial Management: Financial management is important and
includes everyone in the household. Most critical is the fact that financial management is not easy. For financial management to work it must be based on the person's own goals and values. - Budgeting: Budgets are based
on choices you make using your values,
goals, and available resources. Money is a limited resource and even the best budget plans may need to be changed in the event of emergencies or crises. - Values: Values are qualities or standards people consider
to be
worthwhile or desirable. The values of your friends and family may or may not help you decide what you think is important. - Tracking Expenses:
There are various ways to keep track of your
expenses. Record keeping is the process of recording the sources and amount of dollars earned and spent. - Understanding Credit: To know something,
you have to know
everything about it, and that includes your credit. Sooner or later, almost everyone needs to use credit. Credit is the use of goods and services on the basis of paying for them in the future. - Building Consumer Skills:
Personal needs influence our spending
patterns, both good patterns and bad ones. Meeting these needs is important but we can find ways to meet needs that do not lead to overspending. You need to know what type of buyer you are, learn to be a smart buyer, and do cost comparison.
With the assistance of Theresa Wick, a Thresholds staff member who joined us as the agency's project coordinator a few months ago, five of the six financial education class participants have opened IDA accounts. The remaining participant lost her job soon after completing the financial education program. After discussions with UIC and Thresholds staff, she decided that she needed more time to settle into steady employment, and would not open an account at this time. We assisted the remaining five in completing their applications and supporting paperwork. Their eligibility was then verified by our project partner Fred Stupen of Asset Builders CDC (the IDA program in Chicago), and information was collected to meet federal reporting requirements. Finally, the group met with Sam Mansour from Charter One Bank who took their initial IDA deposits ($25 each) and opened five IDA savings accounts. Everyone was excited and happy about taking this step toward financial independence. as you can see from the picture attached to this email.
We will meet with the group again in January to ensure that the second month's deposit is made, and to help participants set up direct deposit or other mechanisms for ensuring timely monthly deposits.
Of the participants who started an IDA, 3 will be saving for buying a home or condo, 2 participants will be saving for post-secondary education or vocational/technical training, and 1 participant is saving for micro-enterprise development. Over the coming months, we will arrange for specialists in low-income home purchasing, financing post-secondary education, and micro-enterprise development to talk to the group. We will continue to meet with the group to help when needed and support ongoing savings.
Depending on the availability of further funding, we may begin recruitment for a second wave of IDA participants. These individuals would complete our financial education course this winter and then open accounts in the spring of 2007.
