Asset Building Among Native Hawaiians: Lessons From the Kahikū IDA Program

Individual Development Accounts (IDAs) are matched savings accounts that encourage asset development for individuals and families with low incomes. Unique data from an IDA program serving 758 Native Hawaiians were used to model the probability of participating in and graduating from the program. Multivariate logistic regression models show that the presence of children in the household, lack of vehicle ownership, and savings goal (education) were positively associated with program participation. Participants with assets to start in the form of homes and relatively high savings balances were more likely to graduate from the program. Additionally, Maui participants were 3 times more likely than O‘ahu participants to graduate. Recommendations for IDA policies and future research are discussed