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?