Smart Quiz! What Type of Account Is Set Up Specifically for Meeting Personal Goals and Offers Matched Savings Outside of an Employer?
- Trust Fund
An IDA is an Individual Development Account and is primarily for low income individuals who may struggle to meet their long term goals without some sort of help. For every dollar you deposit, certain agencies will match and sometimes even multiply your contribution. The agencies involved in this program are based on your qualifications and location. In some cases, your dollar will be matched at a 3:1 ratio so that for every dollar you add, the combined agencies add three.
What’s the catch? You have to meet income qualifications and demonstrate that you can manage your money responsibly. This means taking classes that help you learn to better manage your money. The money also has to be used for specific things, like buying a home, starting a business, or going to college. It isn’t for vacation planning or other frivolous expenses.
~Here’s to Your Financial Health!