The Family Assets for Independence in Minnesota (FAIM) Program is an Individual Development Account (IDAs) project to help Minnesotans build assets through:
This is accomplished by FAIM participants placing up to $40 monthly savings from their earned income into Individual Development Accounts (savings accounts), which will be matched at a rate of $3 for every $1 saved upon completion of asset contracts.
Example:
Saving $40/month for 2 years
=
$ 960
Match of 3-1
=
$2,880
Total Asset Funds Available
=
$3,840
FAIM funding is appropriated through state and federal legislation, and by contributions from both public and private funds. FAIM is part of a national initiative to promote Individual Development Accounts (IDAs). Unlike other subsidized savings accounts such as Individual Retirement Accounts (IRAs) or 401(k) plans', Individual Development Account (IDAs)
Target the working poor
Provide subsidies through matches
Require accountholders to attend financial education classes and asset specific training
FAIM assists people in changing spending and savings behavior, including debt reduction and if necessary credit repair. Participants are required to complete a minimum of 12 hours of financial management classes and an additional 10 hours of asset-specific training.
Eligibility for FAIM
Participants must:
Be at least 18 years of age
Have earned income at the time of enrollment
Be a resident of Minnesota at time of participation in FAIM
Have assets of $10,000 or less
Deposit savings from earned income
Have combined income at or below 200% of poverty (see table below)
Participant’s income and assets may increase after entrance into the FAIM program.
