ORCID
Intae Yoon, 0000-0003-0483-7310
Abstract
This study evaluated a short-term individual development account for young workers (SIDAY) with low income in Gwangju Metropolitan City, South Korea. SIDAY used random sampling methods to form an experimental group (n = 191) and a control group (n = 106) out of 2,589 applications. The experimental group received a 100,000 Korean Won (KRW), which is the equivalent to an $85 USD monthly savings match for 10 months, as well as financial capability programs and services, such as online financial mentoring, spending plan consultations, and electronic financial newsletters. Upon completion of SIDAY, the experimental group on average had a higher savings amount, a lower amount of debt, a lower rate of late payments, and higher scores in financial knowledge and behaviors. Findings suggest that even a short-term individual development account of 10 months is effective in building an emergency fund and financial well-being among low-income young workers in South Korea if accompanied by financial capability programs. This study also demonstrated how empowerment and self-determination—key tenets of social work practice—are applied in an asset-building model, offering practical guidance for social workers interested in creating a similar program.
