Implement Individual Development Accounts (IDAs)
Matched savings programs known as Individual Development Accounts (IDAs) were designed to address the concern that many low-income earners do not have access to employer-sponsored savings programs, such as 401k programs. Participants in IDAs open a savings account and specify a specific savings objective. Their contributions are matched by sponsoring organizations such as corporations, government agencies, non-profit organizations, and foundations. Matching funds are forfeited if the funds are withdrawn for any reason other than to purchase a home, start a small business, or fund higher education.

Although IDAs have many features to incentivize savings on their own, financial education plays an important role in their success. A pilot project initiated by the Corporation for Enterprise Development found that average monthly net deposits increased with each additional hour of financial education training up to twelve hours. Low- to moderate-income families struggle to build and increase their personal savings, often because immediate needs take priority over longer-term financial needs. Savings give individuals the flexibility to make sound financial decisions while also allowing families to manage crises.