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Family Dug Out of Debt, Saved to Buy Home with IDA

Lisa Long and her husband, Antonio, own their home, are building their 401(k) accounts at work and have a savings account for emergencies. Even their children have savings accounts.

But this wasn’t always the case.

Before joining an Individual Development Account (IDA) program, Lisa and her family’s economic situation was drastically different.

Lisa, who worked at a social service agency, and Antonio, a supermarket manager, used to rent an apartment and had $6,000 in medical and credit card debts. They used expensive check-cashing and payday loan services and bought what they wanted, when they wanted it without ever thinking of repercussions.

“I was not a saver; neither was my husband. We lived paycheck to paycheck,” she said.

Lisa’s life was transformed by an Individual Development Account. IDAs match the savings that low-income people make toward homeownership, postsecondary education and small business creation or expansion. CFED pioneered IDAs with 14 local partners in Washington, D.C., including Capital Area Asset Builders (CAAB) – Lisa’s IDA program.

After two years, Lisa used her savings to buy a house.

“I learned that you always pay yourself first, by putting money in your savings account,” she said.

Lisa is sharing lessons about saving with her children. Antoneice opened a savings account for her summer job earnings and is saving to go to college and become a pediatrician while Antonio, Jr. and LaShanda are saving for a motorcycle and a DVD player.

Thanks to their IDA and diligent saving, Lisa and her husband gave their family real financial security. Not only do they own their own home, but they created a new way of life for themselves and a whole new set of possibilities for the future.