On an ordinary day, most people will wake up and get into a car to where they need to be. For some, the luxury of a car is something they can’t begin to fathom because saving money can feel unrealist when you’re living on a survival budget. For Yakima resident and student Ava Reed, buying a car wouldn’t have come as soon as it did if it hadn’t been for the Individual Development Account program, funded by United Ways of the Pacific Northwest’s Community Reinvestment Project (CRP), in partnership with Washington State Department of Commerce. This program provides transformative tools for individuals striving for economic stability. These matched savings accounts, which can provide up to $10,000 in matching funds, are designed to help participants save for specific assets, including automobiles necessary for employment purposes.
By requiring participants to engage in financial education and coaching, the program not only assists in asset acquisition but also promotes long-term financial literacy and independence.
“This program helped me with financial planning more. Just setting those small milestones until you reach the goal” Reed said. “You just have to stay consistent with it until you can meet your goal.”
The ability to purchase a reliable vehicle can be a significant milestone for low-income or individuals who are ALICE (Asset Limited, Income Constrained, Employed) particularly in areas where public transportation is limited. Owning a car expands employment opportunities, reduces commute times, and provides greater flexibility in balancing work and family responsibilities. For many, this can be the difference between underemployment and securing a stable, higher-paying job. The CRP's IDA program acknowledges this by allowing automobile purchases as a qualified expense, provided the vehicle is necessary for work-related activities.
“In all communities, there are people who don’t have certain access to things. I think being able to provide programs like this can help them propel any portion of their life, especially here in Yakima since it is a lower income, migrant community.” Reed stated when asked about the benefits of this program. “In school, we’re not taught about financial freedom or financial stability. Even if someone doesn’t meet their goal, they learn so much for their benefit.”
The IDA program under Washington State's Community Reinvestment Project is more than a financial tool; it's a catalyst for change. By facilitating access to essential assets like automobiles, the program helps individuals build a foundation for sustained economic growth, contributing to stronger, more equitable communities across the state. Reed can now commute to school, work and anywhere she needs to go thanks to the help she received from United Way of Central Washington and their team of financial coaches who helped her reach her goal.
View the full interview here.
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