Choctaw Asset Building (CAB) is an income/asset based, matched savings program available to Choctaw tribal members who live in Arkansas, Texas, and Oklahoma. Educational savings program is offered across the United States.
This savings program can assist qualifying Choctaws in opening a matched savings account that can be used to attend college or vocational school, start or expand a business, or buy their first home. The account holders must save a minimum of $25 per month and a minimum of 6 months. CAB will match an account holder’s personal savings at a rate of $2 for every $1 saved up to $2000 for education and business and $3 for every $1 saved for a home. This program offers: financial literacy, financial independence, and matching funds. Clients need to be 18 years of age to open an account.
How does it work?
You receive a statement each month showing your contributions, interest earned, and the match, so you feel in control of your money. You must save for at least six months in your IDA, and CAB will match your contributions for up to 3 years. Participating IDA savers must attend at least 12 hours of money management training and additional training related to their chosen asset, such as home buyer education or small business classes. The knowledge and skills you gain will help you use your savings wisely and protect your investment. You must meet income and other requirements to qualify for the CAB program.
What can I use a CAB account for?
Choctaw Asset Building (CAB) Accounts are used specifically for three purposes: 1) starting or expanding a small business, 2) purchasing a first home, 3) or, pursuing post-secondary education.
What is financial literacy training?
Each participant in the Choctaw Asset Building (CAB) program must take free financial literacy training (12 hours). At a minimum you will learn how to reduce your debt, develop a savings plan and prepare for your savings goal. You may also learn about your credit history, banking, and investing/money management. The training can take many forms. You may receive one-on-one counseling, classroom training or peer support. Each participant must also have 6 hours of asset training in their particular asset area.
How much money can I save?
CAB lasts 6 months to 36 months. How much you save in the end depends on how much you deposit and how much of a match is offered. The match rate for education and business is 2-1 and for a home purchase is 3-1. For example, if you deposit $50 every month for two years you save $1,200 on your own. CAB offers a 3:1 match, you will receive an additional $3,600 toward your savings goal. In two years you save $4,800. CAB can match up to $2,000 of your own savings. For a home purchase, it would be matched with $6,000 for a total of $8,000 to be placed on closing costs or principle.