Check it out! Alex Biggers, CEF’s Savings Program Coordinator, was invited to write a guest post on the CFED Inclusive Economy Blog. We’re famous!
Read Alex’s entire and beautifully written post on the CFED Inclusive Economy Blog by clicking here, or check out the excerpt below.
“While traditional Individual Development Accounts (IDAs) work towards three main asset purchases – homeownership, education, and small business development – we recognized that savings and housing were in themselves assets to the homeless living in and transitioning out of shelters. While staying at shelters, expenses tend to be minimal. However, when it comes time for many residents to move out, they find that despite their best efforts, they still don’t have enough money – for a rental deposit, furniture, utility deposits, and a financial cushion for emergencies. Though some may have enough funds to move into proper housing, many people have a hard time keeping up with their rent while dealing with volatile incomes and unexpected expenses, and many even return to homelessness.
“Based on the unique need of our members, we structured the savings accounts to incentivize savings towards anything the CEF members see valuable, be it $2000 for an emergency fund, $150 towards a refurbished laptop, or $900 to move into new housing. CEF members define both the amount of the goal and the asset. Unlike a traditional IDA, the CEF match rate is only 10%. Although low compared to other match savings programs, CEF staff has found that this rate truly does incentivize saving, while still allowing the program to remain flexible and easy to administer.
“…Through a network of strong relationships, assertive individualized support, flexible accounts and matches, holistic education, and self-selected goals, CEF continues to facilitate savings, promote asset-building, and create access to a mainstream financial world for a population normally deemed “too poor” to be served by most IDAs. By continuing to listen to and believe in our members that have believed so much in us, we hope that we can move our community closer to realizing their own self-defined goals and promoting financial stability.”
Our thanks to the folks at the Corporation for Enterprise Development for spreading the word about the Community Empowerment Fund and our savings program!