Nearly 22 million Americans may qualify for the federal Saver’s Match, highlighting how powerful matched-savings programs can be for households trying to get ahead. One long-running approach is the Assets for Independence (AFI) program, a federal initiative that funds local organizations to run Individual Development Accounts (IDAs).
Through these accounts, participants save earned income toward defined goals—such as homeownership, education, or launching a small business—and receive a match that can multiply what they put aside. Understanding eligibility, timelines, and required steps helps families use these programs effectively. The details vary by state and provider.
Understanding Assets for Independence (AFI) grants
The Assets for Independence (AFI) program is a federal initiative created to support financial stability for low-income individuals and families through matched savings accounts called Individual Development Accounts (IDAs). (acf.gov)
AFI was established under the Assets for Independence Act and provides grants to non-profit organizations and government agencies that administer IDAs. These accounts let participants save earned income toward specific asset goals—such as buying a home, pursuing higher education, or starting a small business—and receive matching funds that increase the total available for the purchase or investment. (acf.gov)
How matched savings accounts work
IDAs are matched savings accounts intended to help low-income households save for designated goals. Participants deposit part of their earned income, and the program adds a match at a set rate, accelerating progress toward major expenses. (acf.gov)
A real-world example is Minnesota’s Family Assets for Independence in Minnesota (FAIM) program: it offers a 3:1 match, allowing participants to save up to $4,000, receive $12,000 in matched funds, and reach $16,000 total for eligible asset purchases. (minnesotafaim.org)
Eligibility criteria for AFI programs
Requirements differ by state and sponsoring organization, but eligibility commonly includes:
- Having earned income from employment or self-employment.
- Being at least 18 years old and living in the state/area where the program operates.
- Agreeing to save regularly over a set timeframe, often 24 to 30 months, depending on the program. (minnesotafaim.org)
- Meeting income and net worth rules, often including household annual gross income at or below 200% of the federal poverty guideline and net assets below a specified threshold. (minnesotafaim.org)
Steps to participate in an AFI program
Joining an AFI/IDA program typically looks like this:
- Attend financial education workshops covering budgeting, money management, and financial planning. (minnesotafaim.org)
- Contact a local AFI provider to confirm availability and program-specific rules. (minnesotafaim.org)
- Complete the application and submit documentation (income, residency, identification) to verify eligibility. (minnesotafaim.org)
- Open the IDA and begin deposits based on the program’s savings plan. (minnesotafaim.org)
- Use the savings plus match to purchase the approved asset once the goal is reached. (minnesotafaim.org)
Success stories: real-life impact
AFI programs have helped participants reach major milestones. In Minnesota’s FAIM program, one participant saved for a home down payment and reached homeownership within the program timeline. (minnesotafaim.org)
Another participant used matched savings to start a small business, which increased income and supported greater financial independence. (minnesotafaim.org)
Additional resources and support
Many AFI programs provide more than the match itself, including:
- Community support, connecting participants with others pursuing similar goals. (minnesotafaim.org)
- Asset-specific education, such as training tied to homeownership or business development. (minnesotafaim.org)
- Financial coaching, offering one-on-one guidance for managing money and staying on track. (minnesotafaim.org)
Key takeaways
- Many programs add services like coaching, asset education, and peer support. (minnesotafaim.org)
- AFI programs use matched IDAs to help low-income participants build assets and improve financial stability. (acf.gov)
- Common eligibility elements include earned income, being 18+, and meeting income/net worth guidelines. (minnesotafaim.org)
- Participation often includes applying through a local provider, completing workshops, saving over time, and using funds for an approved asset. (minnesotafaim.org)
- Reported outcomes include homeownership and small business creation using matched savings. (minnesotafaim.org)
