We know how little of your paycheck is left after all the monthly bills are paid.

Saving a few bucks a week hardly seems worthwhile.

But it can be, especially if that money goes into an Individual Development Account that matches every dollar saved with an additional $2 or more.

Set aside $10 a week and your IDA could grow to $1,500 in just one year.

IDAs aren't well known, but they're one of the smartest ways for many low- and middle-income families to save and see a big difference in their lives surprisingly soon.

Not everyone can qualify and your savings must be targeted to a very specific goal.

Buying a house is the most popular. But opening a business, going to school or back to school, purchasing a car or creating a retirement fund can all be acceptable goals as well, if you use the right IDA.

Spending just a few minutes with our five-step guide to Individual Development Accounts will provide knowledge as to how they work, the benefits they offer, and how to qualify.

Step 1. Locating IDA programs.

More than 500 nonprofit community organizations and churches in low- to middle-income neighborhoods across the country sponsor IDAs.

Those sponsors write specific rules for those who qualify for one of their IDAs. They also determine the goals they'll support with matching funds.

IDAs recruit government agencies, businesses, charities and individuals to donate the matching funds, and find a bank or credit union willing to administer the accounts and provide participants with detailed monthly statements.

Click here to find an IDA in your area. When you get to the page, don't worry about entering your name. Just use the drop-down menu to choose a state, then scroll to the bottom, ignoring all of the other questions, and click on "Begin Search."

Step 2. Selecting a goal and an IDA that fits your needs.

Many of the sponsors on this list don't have Web sites, and some that do provide little or no information about their IDAs. But there are e-mail addresses and phone numbers so you can contact the sponsors.

Every IDA requires saving and working toward a specific goal.

But every IDA doesn't support every goal.

So start by selecting a goal that fills your needs, and then ask each program sponsor if its rules allow matching funds to be spent for your specific goal: for instance, buying a home or paying for college tuition.

The most widely supported goal is buying a home.

Last November alone, a dozen families used their savings and matching funds to make down payments on houses in Charleston, S.C. -- homes they would have never been able to buy without their IDAs.

"It just shows what can be done if people are given the tools to do something," says Lenore McKenna, executive director of the Charleston Area Community Development Corp., an IDA sponsor. "We've changed a lot of lives down here."

In parts of the country home prices are so high that it's unrealistic to think that people can save enough for a down payment in just a few years, even with the help of such a program. Many of those people have other ambitions.

Starting a small business is another popular goal.

Aspiring daycare owners have used IDAs to bring their homes up to stricter codes, buy equipment and cover licensing fees. Others have started a carpet cleaning or lawn care service or learned CPR so they could earn a living teaching CPR to others.

Education is a third goal supported by most IDA programs. For instance, participants can seek a new skill, such as hair styling, take computer classes so they can qualify for a new, higher-paying job (and perhaps buy their own computer), or save for course work that will help them advance in the job they already have.

Step 3. Qualifying for an IDA.

Next, see if you meet the program's specific financial requirements. In general:

• Income can't exceed twice the national poverty level. That's about $40,000 a year for a family of four, which is just a tad less than the national median family income of $42,326 a year. This means half of all families make more and half make less.
• Personal assets, not counting your home and one car, can't exceed $5,000 to $10,000.
• High debt levels may make it impossible to save even the few dollars that are required to be saved each week.

Step 4. Building an account.

When signing up for an IDA, a savings goal will be set and minimum scheduled deposits will be agreed upon and made until the goal is reached. Although minimum deposits vary, they can be as low as $10 a month.

While there is no restriction on how much can be saved, most programs limit how much it will match each year -- $500 is typical, but some match more.

Attendance in a 10-hour money management class that explains how to read a bank statement, open a checking and savings account, plan a budget and make smart financial decisions like avoiding payday loan stores, is required.

Another six hours of goal-focused classes will discuss what lenders expect during the mortgage application process, or all the costs to be considered before starting a new business.

Step 5. Cashing in ... Moving up.

IDAs are not long-term propositions. Most programs expect the goal to be achieved in one to five years, depending on what it is and how much must be saved.

"We like to have people out of the program and on their way in 18 to 24 months," says Woody Woodrow, director of the Texas Asset Building Coalition in Austin, an IDA sponsor.

Your money is always available in case a financial bind requires savings to be withdrawn prior to reaching the goal. The money is always yours.

But matching funds can't be withdrawn until the goal turns into reality and they can only be applied to reaching that goal. The money is usually paid out in one big withdrawal, such as for the down payment on a house, but it can be disbursed in several partial withdrawals to pay for tuition and textbooks over a number of semesters.

The IDA always gives matching funds directly to a third-party, such as the school you're attending or the seller of the home you're buying. It is never given directly to the person saving the money.

"It's not a handout," Woodrow says, "it's a hand up."

By Carolyn Siegel

Interest.com Associate Editor

Have a question about your finances? Ask us at editors@interest.com