News

The North Hills Community Outreach Family Savings Accounts program steered Nancy and Terry Lee of Ross in the right direction in their drive to save money to purchase a vehicle.

With money provided by the Pennsylvania Department of Community and Economic Development, the savings account program provides a dollar-for-dollar match of up to $2,000 for low-income people saving for a state-approved goal, such as a car, business expenses, home purchase or repair or higher education, said Harriet Gibbs, North Hills Community Outreach's resource coordinator.

To qualify for the program, participants must be Pennsylvania residents and meet the federal income guidelines of being at a poverty level, depending on the size of the household, Gibbs said. The savings plan is based on a two-year investment that requires participants to make a monthly deposit based on their income.

The Lees originally enrolled in the program in November 2003 to save money so Nancy Lee could start a sewing business. Halfway through the program, they changed their goal and decided to put their savings towards the purchase of a vehicle to replace their old one.

Last month, after saving $42 a month and making one $500 balloon payment a year, the Lees purchased a 1998 Chevrolet minivan for $3,800.

"This is the first time we've taken advantage of the program, and it has definitely been worthwhile," said Nancy Lee, 50. "It motivated me to put money away to work towards a specific goal. Having the amount matched was a big incentive."

Before being accepted into the Family Savings Accounts program, clients must attend an orientation meeting, where they state their financial goal and develop a realistic savings plan, Gibbs said.

Generally, people try to save $1,000 to $2,000, and if they don't reach their goal within the 24-month period, they don't receive the matching money, Gibbs said. The earliest a participant can reach the goal is 13 months.

"We like what we're seeing," Gibbs said. "We're pleased with people reaching their goals. Most of them save for cars or home repairs."

In the three years North Hills Community Outreach has offered the savings program, 112 people have participated. Currently, 52 are enrolled in the program. Twenty-seven participants have graduated and received their money, Gibbs said.

While enrolled in the savings program, clients must take a basic money management workshop, as well as two additional workshops relating to their goal. For example, Gibbs said, a client 55 years old or older who is saving for a car could take a mature driving class sponsored by AARP.

To make it easier to save money, program participants may take advantage of other North Hills Community Outreach services. If they're eligible, they can save money on food by using the food pantry, or if they have school-age children, they can enroll in the back-to-school program and receive free school supplies, Gibbs said.

"It's an excellent program," Lee said. "There aren't too many investments where you get 100 percent back."

• Most Read
• Most E-mailed
• Latest News