In order to turn savings into assets – such as a home, car, business, or college education – families need connections to savings and credit-building products, specialized organizations and services, and most important, a long-term savings plan. Financial coaches help families turn savings into investments.
Create an Asset Plan & Connect to Resources
Financial coaches help participants visualize long-term goals and then build a plan to achieve them. Families are referred to resources such as homeownership
programs, small business development
programs with access to training and capital, college and scholarship
programs, and foreclosure prevention
programs. Participants continue to reduce debt and improve credit in order to build the capital needed to gain assets.
A good credit score opens the doors to homeownership, a reliable car, and other assets. Twin Accounts
is a financial product that helps participants increase credit scores
through a small $300 loan coupled with a one-to-one matched savings account. Credit scores are increased as monthly payments are reported to credit bureaus. After the loan is paid, participants obtain a secured credit card
so they continue to build credit.
Develop and Maintain AssetsIndividual Development Accounts
(IDAs) are three-to-one, matched savings accounts
that allow participants to save money towards homeownership
, small business development
, or education
. After the intensive, four-year savings program, participants not only obtain $6,400 to put towards an asset, but they also gain the money management and savings habits
to further develop and maintain assets.