The state is offering a financial incentive for low- and moderate-income families in Mercer County who need money for a down payment on a house, education or to start a business.

Under the Family Savings Accounts Program, families can earn a match of up to $300 a year for money they save for those purposes.

But the money isn't summarily handed out. Interested people must set up a formal goal plan and take a 12-hour course that will cover subjects such as budgeting, credit and financial management.

Debbi Paul, manager of Mercer County Housing Authority's Pennsylvania Business Impact Center and Community Homebuyers Inc., will help applicants set up goals and enroll for the class.

Upon completion of the class, participants are eligible to receive 50 cents for every dollar they save, with a limit of $300 a year.

People who are looking for money for education and to start businesses and are willing to submit to more stringent guidelines can get $1 for each $1 they invest, up to $600 a year.

Under low- and moderate-income guidelines, a family of four can earn no more than $35,300 a year.

James Graham, executive director of the Pennsylvania Appalachian Capital Alliance, said the program is designed to help families who are having problems making ends meet learn to save.

"The issue here is discipline and education," Graham said.

The alliance, a private, non-profit organization that provides loans and investments in low-income communities, is putting up the matching funds.

L. DeWitt Boosel, executive director of Mercer County Housing Authority, said a report by the Joint Center for Housing Studies of Harvard University showed that many rental households spend more than half their income on housing, making it hard to save money for a down payment to buy a house.

The plan ties in with the authority's plans to demolish Steel City Terrace, Farrell, and replace it with rental and for-sale units.

The authority has set a goal of selling five of the 12 for-sale units to families who earn less than 50 percent of the area's median income, and the rest to families who earn less than 80 percent of the median.

First National Bank is handling the money for the Family Savings Accounts Program and all funds must be saved at FNB.

Participants have five years to spend the money.