What is an I.D.A.?
An Individual Development Account (IDA) is a matched savings account, which means that every dollar deposited into it increases by another $3 that can only be spent on tuition and other mandatory supplies for training and education beyond high school. In other words, every dollar saved is worth 4 scholarship dollars!
Who can get an I.D.A.?
Most 11th, 12th, and 13th graders at Friends of the Children can sign up for an IDA simply by joining the Next Steps Project! Unfortunately, there are a couple of limitations:
- To qualify for an IDA, you must be a resident of Oregon.
- You need to sign up by the deadline of Friday, October 31st (a.k.a. Halloween 2015)!
- Your family cannot make more money each year than the following incomes:
When are the required Next Steps Meetings?
Anyone who wants to apply for an IDA needs to complete several financial classes first. Fortunately for young adults at Friends of the Children, we are hosting these classes right here on-site during Teenspace! Each class is from 4:30 to 6:00pm, every Wednesday during November and early December. Check out the full schedule here.
How do you sign up?
Joining Next Steps automatically reserves you a space in the mandatory financial classes... but make sure you sign up in time for our first meeting on Wednesday, November 5th (2014)!
Where does the money come from?
Youth at Friends of the Children who join the Next Steps Project and open an IDA account will have scholarship funds coming in from two places:
- For one year, Friends of the Children will contribute at least $25 a month to your account.
- Every $1 that FOTC deposits will be matched with $3 from the Oregon IDA Initiative. They are funded by local businesses and personal contributions.
What's the fine print?
There are a few important things to know before signing up for an IDA:
If these details feel confusing or concerning, please get in touch! They're always easier to understand when we talk in-person.
- All IDA earners must be at least 15 years old and a resident of Oregon.
- All IDA earners must complete the Financial Literacy Classes (held during Teenspace in November and December 2014) before they can open their account.
- Participating in Next Steps (i.e. attending the Financial Literacy Classes and coach meetings) is necessary but not sufficient to open an IDA: you must also turn in your completed paperwork in a timely manner, and then open your account by the deadline provided!
- There are limitations to how much scholarship money IDA can provide you, and there are also limitations to how much savings Friends of the Children can contribute in a year. The absolute maximum scholarship savings is $4,000 but since Friends of the Children does not have that much money, you would have to also make deposits from your personal earnings/savings. This is highly encouraged, but not always possible for everyone.
- FOTC can only contribute money to an IDA account for one year. Anyone who wants to earn quadruple savings after the first year will need to save their personal money! The monthly minimum deposit is $25 per month.
- Remember that IDA earners will need to provide documentation such as: pay stubs, proof of residency, and tax returns. This information will not be used for anything except confirming eligibility.
If these details feel confusing or concerning, please get in touch! They're always easier to understand when we talk in-person.