Eligibility: 200% of Poverty and employed
Program Description: The Family Assets for Independence in Minnesota (FAIM) Program helps Minnesota low-wage earners build assets through purchase of a home, pursuit of a higher education, or capitalization of a small business. Accountholders place monthly savings into financial institution Family Asset Accounts (savings accounts), which will be matched upon completion of asset contracts. Accountholders complete a minimum of 12 hours of financial management classes and an additional 10 hours of asset-specific education.
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, IDAs target the low-wage earners, provide subsidies through matches rather than through tax breaks, and require accountholders to attend financial education classes.
To be eligible for FAIM the adjusted gross income of the household is equal to or less than 200% of the poverty line (as determined by the Office of Management & Budget) or the earned income amount described in Section 32 of the IRS code of 1986 (taking into account the size of the household) and assets of $10,000 or less. FAIM accountholders earn match at a rate of $3 for every $1 that they save. Savings must be from earned income. Accountholders are encouraged to save regular amounts on a monthly basis (e.g. up to $480/year, averaging $40/monthly). Each accountholder has two years to save beginning from the date of the first deposit.