How do IDA programs prevent people from borrowing money from family or friends to quickly access the matching funds?
Participants cannot simply deposit a sum of money, have it matched, and withdraw the funds. First, IDA participants must complete financial education classes and sign savings agreements based on their personal budgets and savings goals. Second, IDA participants must use their own savings to cover their portion of purchasing their goal. The matching portion is remitted directly to the vendor or escrow account. Finally, in the California Savings and Asset Project (AB 692), participants are required to save for a minimum of 6 months before match funds can be withdrawn.
