Utah Individual Development Account Network available to help low-income individuals raise money, become financially sound

When it comes to saving for a house, education or small business, one Utah group is helping out. Consider it venture capital and education for low-income individuals.

Utah Individual Development Account Network matches three dollars for every dollar someone in need raises. Along the way, they also help people become more financially sound.

"The heart of the program is to give people the financial skills to take care of themselves," said Martha Wunderli, UIDAN state director.

By offering an Individual Development Account, the network helps people who are considered "low income" to meet goals financially. An IDA is a savings account provided to low-income individuals. The individuals put money into the account and their money is matched through the UIDAN program.

About 520 different families have received assistance through the Utah program, said Wunderli. Over 20,000 people have participated in various IDA programs across the country.

Wunderli described the program as a "multi-faceted financial education and match savings program for lower-income working Utahns."

Participants can earn up to 200 percent of the federal poverty level, adjusted to family size. For example, a single person could not make more than $21,660 per year to qualify, but a person who has eight people in their family could make no more than $74,020 to qualify.

Participants in the program must live in Utah. They also must be at least 18 years old and have an income. Those wishing to join the program cannot have more than $10,000 in assets, excluding one car and one house.

Once accepted into the program, participants are required to make monthly deposits with a minimum of $15 and a maximum of $62.50. A participant must be a part of the program for at least one year with a maximum of three years. The program ends when you have saved $1,500.

Those who miss their monthly payment, Wunderli says, are reminded that missing a mortgage payment would result in a late fee.

Participants are required to save every month. They are held to a contract and can be dismissed from the program if they chose not to set money aside.

Several financial trainings, assessments and consultations are required while in the program. Those who meet the eligibility requirement must attend eight to 10 hours of financial education classes.