Dubuque, Iowa – Thanks to a newly-adopted persistence to save money, a Dupaco Community Credit Union Individual Development Account (IDA), and a $3-for-$1 matching grant from the Iowa Credit Union Foundation (ICUF), 33-year-old Adam Shepherd and his four-year-old daughter, Sarah, were able to move into their very own home.
With ongoing help of Dupaco Money Makeover coach Paula Ervolino, Adam systematically saved $2,000 during a seven-month period, beginning in November 2009. Combined with the ICUF grant, Adam’s $8,000 savings was more than enough for a down-payment on a home. Dupaco made him a mortgage loan to finalize the purchase.
Through the IDA program, the savings of a participant are matched by a grant from another organization. (In Adam’s case, Dupaco Community Credit Union.) Dupaco then opens a savings account and provides financial education required by the program to help ensure the participant’s goals are met. The matching funds come from ICUF, thanks to private grants it has received.
Participants must meet income guidelines and be residents of or purchase assets in the state of Iowa to qualify for an IDA account. The savings and matching funds are then used by the individual to purchase a specific asset, such as a home, starting or expanding a small business, paying for education or job training, or purchasing a vehicle to get to work.
Adam works two full-time jobs and credits Dupaco with showing him how to effectively budget.
“I knew I was making money,” said Shepherd. “But I didn’t know where it was going until I started using the program’s savings diary. The IDA program helped me clean up unnecessary debt and taught me the power of systematic saving.”
Adam, who was renting an apartment, says the home is a wonderful space for his daughter, as well as a financial investment in his future. “The home has a great potential to help build my net worth,” he pointed out.
Financial education was the key component in his savings success, he said, who credited Dupaco’s Ervolino with keeping him on track. “Paula was extremely easy to work with,” said Shepherd.
Paula said Adam was successful because he stayed focused.
“Adam completed his workbook of lessons early in the program and stayed on top of his financial education requirements,” said Ervolino. “So when the time came to purchase his home, there was nothing standing in his way.”
After his family pitched in to help prepare the home, Shepherd was excited to move in.
“I’m just looking forward to playing catch me and hide-and-seek with my daughter,” said Shepherd. Read more here.