How do asset building programs work?

Asset building programs support people with limited financial resources to accumulate assets that help them improve their self-sufficiency and end the cycle of poverty. This is accomplished through a combination of financial literacy education and a matched savings opportunity called an Individual Development Account (IDA).

The financial literacy workshops give individuals and families the skills and confidence needed to make sensible and practical personal money management decisions. These money management skills are reinforced as participants make small monthly savings deposits into IDA accounts.

IDA savings are matched by funding partners at ratios that commonly range from 1:1 to 1:3, thus providing a tremendous incentive to save. The money saved in this process can then be invested in a variety of ways such as education, starting a small business or buying a home.

While the programs focus on helping participants develop their financial assets - improvements can be seen in all other asset categories (social, personal, human, and physical) as participants see the results of their financial decision making. Improved self-confidence, decision making skills, goal setting and planning, community involvement, and personal self-worth are key outcomes of the process - all of which bring additional benefits to the community.

This website was produced with CEDTAP, Vancity, Bell Canada, and the Royal Bank of Canada.