the saving circle story. why idas? alternative financial services coalition seed winnipeg inc....
TRANSCRIPT
The Saving Circle Story
Why IDAs?Alternative Financial Services Coalition
SEED Winnipeg Inc. Assiniboine Credit Union Northend Stella Community Ministry United Church of Canada Mennonite Central Committee
Concerned about departure of banks from the North End
Address reliance on fringe financial services
Financial literacy identified as an important strategy
Our IDA Pilot Project Designated Assets
Business start or expansion Home ownership or renovations Education
Program Design Match – 3:1 Minimum deposit: $10 Maximum savings matched - $1,000 Maximum match available: $3,000 Savings period: 12 – 24 months
Income Threshold 100% of LICO
2000 - IDA Pilot: A Partial Success
Who was being missed?
Why were they not applying?
What changes would you have suggested?
2002 - Saving Circle ProgramFirst of program of it’s kind in Canada
Flexible Savings Goals
Program DesignMatch – 3:1Minimum deposit: $5Maximum savings matched - $180Maximum match available: $540Savings period: 4-6 months
Income Threshold60% of LICO
2006 - Program Replication through AssetBuilders Partnership
Established bySEED WinnipegUnited Way WinnipegAssiniboine Credit Union
Replication Partner OrganizationsWorking to address poverty using different
strategiesSEED provides co-ordination, training and supportHas grown from 4 to 14 partner organizations
Program Delivery to DateAs of March 31, 2011
Over 1000 program gradates
Over $1 Million in participant savings
Over $1.5 Million in matched funds released
Feedback from Participants
“It taught me to set priorities, and to think about my long-term wants and needs. I live
simply and put the profits back into the business. I paid off all of my equipment in the first three months, and have tried to keep the
business as debt-free as possible.”
Feedback from Participants
“The biggest impact of this program has been on my son. It makes me feel proud that I
finished with the program and that my son wants more people to come over now.”
Feedback from Participants
“I can do this, I have my own savings account now and one for my daughter. There’s always a way to make your dream come
true.”
Participant Outcomes I am
happier with my life now than before . . .
I am more in control of my life now than before . . .
I have less personal stress in my life now than before . . .
I have less financial stress in my life now than before . . .
I save more money now than before . . .
I have a better family life now than before . . .
IDA
5.2 4.7 4.6 4.4 3.8 4.6
Saving Circle
5.5 5.2 5.2 4.5 4.5 4.8
Any Questions or Comments?
Discussion Questions
1. What are some examples of other program variations? How well are they working?
2. What is more important – acquiring the asset or the building financial capability?
3. What are the key program elements that must be included in asset building programs?