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Program Description

Program/Practice Description: AFI helps low-income families move out of poverty by saving their earned income in IDAs. Every dollar in savings deposited into an IDA by a participant is matched from $1 to $8 by the AFI project. The IDA instrument promotes savings and enables participants to acquire a lasting asset after saving for a few years. To help clients with their IDA savings, all AFI projects provide training and support services related to family finances and financial management, including:

  • Financial education on issues such as owning and managing a bank account or a credit card
  • Credit counseling and credit repair
  • Guidance in accessing refundable tax credits, including the Federal and State EITC, child tax credit, and others
  • Specialized training about owning a home, starting a business, or attending postsecondary school

Innovations and Results: Serving low-income families since 1998, AFI has had many successes. As noted in the 2006 AFI Report to Congress, OCS awarded $94.7 million in AFI grant funds between FY 1999 and FY 2005. Grantee organizations and their partners have provided at least $94.7 million in nonfederal funds to match the Federal grant amount to support their AFI projects. Additionally, participants have opened 34,454 IDAs and regularly deposited earned income into these accounts.

More than 9,000 participants have finished saving, completed the required financial education, and used their accumulated savings and IDA matching funds to purchase long-term economic assets. They have made the following IDA withdrawals:

  • 3,448 for home purchase
  • 2,537 for the start-up or expansion of a small business
  • 2,855 for postsecondary education or training
  • 329 for other asset purchases (in the State of Pennsylvania only)
  • 17 for transfers to IDAs to family members (transfers from a participant to a spouse or dependent who uses the IDA resources for home purchase, small business, or postsecondary education or training)