Latisha’s Story: Using an Individual Development Account to gain assets and employment

Moving to a new community as a single disabled parent was not easy for Latisha G. (not her real name). She had just relocated after a protracted and difficult divorce. She had managed to secure emergency subsidized housing and was receiving SSI.

“I was doing everything wrong,” she says. “I didn’t have a bank account, I didn’t have a plan and I didn’t really have any hope.”

“I just, kind of existed for a while, kind of a long while,” she says. “I just got up, watched TV and went back to bed.” This cycle continued, re-enforcing the hopelessness of her situation. Latisha would get a spurt of energy, look for a job for a week or so, and then fall back into the lethargy of hopelessness. Eventually, a friend she had made at the housing department pushed her to look for work. Actually, “she told me to get moving and stop feeling sorry for myself, but she used different language.”

Latisha didn’t have any work experience, and she was afraid no one would hire her because of her disability. She decided to look for volunteer opportunities to build up her resume. Fortunately, the first volunteer opportunity she found was looking for people to train to become volunteer income tax preparers at her local church.

Latisha went to the orientation, and over the next few weeks, consumed every piece of asset building information she could get her hands on—she was hooked!

Within two months, Latisha was helping to prepare other people’s taxes and had a plan for herself. “Basically, I had to earn some income, somehow,” she says. “It all seems to hinge on earning some income.” Latisha started by helping out other single moms with their kids.

“It took a few months for people to trust me; my disability makes me come off a bit quirky,” she says. Eventually, Latisha had several regular clients, and a small but stable additional income. “Once I knew the money would be fairly constant, I signed up with an educational IDA program I learned about through the VITA training.” The other moms were surprised when Latisha started asking them to sign a receipt for the money they paid her. “They didn’t really get it. They were like, ‘you don’t have to tell anyone about that money,’ but I had learned better.” Latisha’s IDA program provided a 2:1 match, and she wanted the receipts to prove income eligibility for the program.

Latisha started contributing to her IDA account last May; the amount she contributes often results in no change to her SSI income. “I was really excited to start the program -- it’s like free money to go to school.” By next June, Latisha is hoping to start taking community college classes paid for by her IDA. In January, Latisha starts a new part-time job with a local non-profit to assist with some of the administrative responsibilities with the local VITA program. She is hopeful the part-time position will continue past the end of the tax season and may ultimately turn into a full-time position working in the asset building community.

In addition, this year, Latisha will be able to claim the Earned Income Tax credit. “I’m going to file my taxes on January 1st!” she says. Latisha is expecting a refund of over two thousand dollars. She already has plans for the money. “1/3 goes into my IDA, 1/3 goes into a savings account for my daughter, and 1/3 goes for fun.”

The most important thing Latisha has learned from this process?

“Hope, there is always hope, and help. Don’t be afraid to ask for help and don’t be afraid to hope.”