What is a Youth IDA?
The Youth IDA Program is similar to the IDA-classic program, but allows for youth to save to attend post-secondary education classes.
What a Youth IDA purchase?
Youth IDAs are specifically set up for youth to save for education, but IDA funds may be available for the downpayment of a home, post-secondary education classes, purchases necessary items for post-secondary education classes, and purchase necessary items to start a small business.
How does the IDA program work?
IDA participants open designated savings accounts at partner banks. Every account must be opened with a $20 deposit. KDVA offers a 2 to 1 match, for every dollar saved in an IDA, the dollar is matched with $2. A participant can save a total of $2,000 and will be matched with $4,000 to have a total of $6,000 to spend on an asset purchase. Only earned income can be saved in accounts. All participating banks have agreed to waive fees and minimum balances requirements while the participant is an active IDA saver. While the IDA-classic program is a maximum of three years, the youth IDA program is available for a maximum of five years.
Earned income must be deposited, but what can be considered earned income?
What are the requirements?
Youth IDA applicants must have an earned income and less than $10,000 in net worth. Net worth is assets (what you own) minus your liabilities (what you owe/your debt). Participant income eligibility is determined by the Income Guideline Chart. Income eligibility and net worth are determined by the youth’s household.
Participants must be in the program for at least 6 months and no longer than five years. During this time youth IDA participants are making monthly $20 deposits in the IDAs and are meeting with an IDA advocate at a KDVA partner agency. All participants are required to attend financial skills building workshops to learn how to save, budget and invest wisely. Participants are also required to work on credit scores by building credit and paying off debt.
To find a partner agency near you, please click here.
What are the benefits of an IDA Program?