Acorns App Overview: Invest & Grow

*The following article is based on opinion and is no way financial advice. We are simply providing examples and thoughts based on our own personal experiences and results with the program.

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Where to Start

Are you ready to take a leap into investing but find the prospect daunting?

Fear not, we’re here to discuss the process of turning your spare change into a growing investment.

As a subscriber of the Acorns app for the last couple of years, we wanted to share our thoughts on how painless it can be to start investing for your future- even as a novice.

Below, we’ll delve into the features, benefits, and potential drawbacks of the Acorns app for you to make your own decision.

Whether you’re a seasoned investor or a beginner looking to dip your toes into the financial markets, Acorns offers a unique approach that might just be the game-changer you’ve been looking for.

Has Anyone Ever Made Money On Acorns?

This is really the question when looking to start investing, isn’t it?

You want to improve your financial future and find the best options to help set yourself up with a comfortable cushion.

But will this app actually make you any real progress?

To give a personal example, here’s an actual screenshot of an account at the time of this post:

This is an account using their Recurring investment feature.

These particular results are from an account investing $30 every Friday for the last three and a half years.

Though you can put in any amount you’d like (minimum $5), we figured we would spend more at the bar or even on a lunch over the weekend, am I right?

Of course, the standard market ebbs and flows, but over the long term, data has shown the average annual return for a portfolio (consisting of a mix of stocks and bonds) has ranged between 5% and 8%… or greater, depending on the state of the market.

Though these figures are a broad estimate, the average invested rates are better than funds sitting in most Savings accounts (which may not even be 1%).

And the bigger percentage of returns invested, rather than ‘saved’, can pay in the long run.

Referral Bonus

Acorns also allows you to refer friends to their services and receive a bonus in investment dollars.

They typically run a new promotion every few weeks or so.

The promotions are as follows: if you refer a certain amount of friends to join by a certain date (usually within the week) you will get a bonus investment into your account.

Example: At the time of this article, referring 5 friends will get you $1,212!

It seems easy enough, but there are some qualifying guidelines.

The new investors must invest at least $5 minimum and link a bank account for future deposits (withstanding for 14 days) in order to redeem the offer.

The new investors get the $5 bonus and you (the one who referred them) will get the promo bonus- when available.

You must hit the necessary amount of new referrals for each promotion and each new investor must meet the minimum requirements to qualify.

But once confirmed as a qualified investor, these bonus’s are typically deposited into the Acorns accounts within 30 days.

Here is a link to the terms and conditions of this program for further review and understanding: Acorns Referral Program Overview

*Please note, some links from this site are using the referral link. We may be compensated in some form for the initial use of the app*

What’s It Cost?

Acorns has three subscription plans to get you going, no matter what stage of life you’re in.

You can choose from different tiers depending on what you are looking for in an investment strategy.

Acorns Personal

$3 per month includes the basic tools to get started with investing.

This is the one we use currently use and suggest starting here if you are just looking to dip your toe into the investing pool.

Acorns Personal Plus

$5 per month and gives you a few more bells and whistles to up your investing game.

If you are looking for some learning extras like Live Q&A’s and higher % return banking options, this may be your ticket.

Acorns Premium

$9 per month has everything you need to save and invest for the whole family.

The Premium service includes investment accounts for kids, customizing with individual stocks, etc.. The all-around option.

Check out further details of each here: Acorns Pricing

Understanding Acorns: A Closer Look

Acorns operates on the principle of micro-investing, allowing users to invest their spare change from everyday transactions.

Link your credit or debit cards, and Acorns rounds up your purchases to the nearest dollar, investing the spare change in diversified portfolios.

But is this spare change strategy effective, and how does it cater to different financial goals?

For one thing, it helps you start saving when you might not have done so otherwise.

Hitting those goals begins with a single step and this approach is a move in the right direction.

You can invest as much or as little as you’d like, but with the Acorns app, at least the ball is moving.

Many find the effortless process of round-up investing a refreshing starting point.

The Do’s & Don’ts: Pros and Cons of Acorns

When you get down to it, the app is great to have as a beginning investor.

But let’s take a closer look at some of the Pros and Cons of using Acorns to get a better idea of what exactly about the app may work best for you.

Pros

Automated Investing: The app’s automatic round-up feature ensures that you consistently invest even the smallest amounts, fostering a disciplined approach to saving and investing.

Diversified Portfolios: Acorns offers a range of investment portfolios designed to suit different risk appetites, from conservative to aggressive. This diversity allows users to tailor their investments to their financial goals.

User-Friendly Interface: Navigating Acorns is a breeze, making it particularly appealing for beginners. The clean interface, coupled with educational content, helps users understand the basics of investing.

Found Money Feature: Acorns has partnered with various brands, and when users make purchases through these partners, a percentage of the transaction is invested back into their Acorns account.

Cons

Fees for Small Balances: While Acorns charges a nominal fee (starting at $3 per month), it can be relatively high for users with small balances. For those with larger portfolios, the fee structure may be more reasonable.

Limited Investment Options: Acorns primarily offers ETF-based portfolios. While this simplicity is an advantage for beginners, seasoned investors may find the lack of customization options limiting.

Potential Overdraft Risk: The round-up feature, if not monitored, could lead to overdrafts, especially for users with tight budgets. Acorns has introduced safeguards, but users must be vigilant.

Who Benefits Most from Acorns?

There are many types of investors with different strategies who stand to gain from using the app, such as…

Beginners Seeking a Simple Entry into Investing

For beginners hesitant about diving into the complexities of stock markets and investment strategies, Acorns is a welcoming gateway.

Its user-friendly interface, educational resources, and automated approach make it accessible to those new to the investing arena.

The spare change round-up feature is a painless way for novices to start building an investment portfolio without requiring substantial upfront capital.

Savvy Investors Looking to Diversify

While Acorns is often marketed toward beginners, its diverse portfolio options make it appealing to more seasoned investors seeking a supplementary investment tool.

The ability to choose from portfolios ranging in risk allows investors to diversify their holdings easily.

Acorns can be viewed as a complementary platform for those looking to spread their investments across different financial instruments.

Individuals with Long-Term Financial Goals

Acorns is well-suited for individuals with long-term financial goals, such as saving for a home, education, or retirement.

The app’s automatic saving and investing features encourage consistent contributions, fostering a disciplined approach that aligns with long-term wealth-building strategies.

Anyone Seeking a Passive Investment Approach

For those who prefer a hands-off investment strategy, Acorns is an excellent choice.

The automatic nature of the app – from round-ups to portfolio rebalancing – appeals to individuals with busy lifestyles who want to invest passively without the need for active management.

Why Acorns Stands Out

What makes this app a diamond in the rough when it comes to the investment app category?

The Power of Spare Change

The brilliance of Acorns lies in its ability to transform seemingly insignificant amounts – spare change – into a robust investment portfolio.

This micro-investing approach is particularly advantageous for individuals who struggle with setting aside larger sums regularly.

The automated round-up feature ensures that users consistently contribute to their investment accounts without actively thinking about it.

Recurring Investment Feature

Do you have to use the spare change round-up to get the most out of Acorns?

Not at all.

Among other options, they also give you the ability to make recurring investments either monthly, weekly, or daily.

Invest as much as you are comfortable with putting toward your investment goals and watch the account grow.

This feature, coupled with the Spare Change application, can increase the growth at a more steady and measurable rate.

Seamless Integration with Daily Life

Acorns seamlessly integrates with users’ daily spending habits, creating an unobtrusive and efficient saving and investing process.

The ability to link multiple cards and accounts means that every purchase contributes to building an investment portfolio.

This integration encourages a painless and habitual approach to saving and investing, aligning with the principle of “set it and forget it.”

Educational Resources for Financial Literacy

Recognizing the importance of financial literacy, Acorns goes beyond being a mere investment platform.

The app provides educational content, including articles and tutorials, to empower users with knowledge about basic financial concepts, investing strategies, and market trends.

This commitment to financial education sets Acorns apart as a holistic financial wellness tool.

Found Money Partnerships for Additional Returns

Acorns enhances its value proposition through the Found Money feature, establishing partnerships with various brands.

Users can earn a percentage of their purchases back as investments when shopping with these partners.

This innovative approach not only adds an extra layer of reward to everyday spending but also contributes to the growth of users’ investment portfolios.

Let’s Round It Up

In the grand landscape of investment apps, Acorns has stood out as a handy and accessible tool bringing the benefits of investing to a broader audience.

There is a lot more involved with their programs if you want to take a deep dive and use every feature, but the ease of even their introductory subscription has a lot to offer.

Their spare change approach, together with diversified portfolios and user-friendly features, makes it an excellent choice for beginners and a valuable additiion for more experienced investors.

We’ve talked about how the app isn’t without its fees and limitations, but its unique advantages, such as the Found Money feature, Referral Bonus’s, Recurring investments option, and commitment to financial education, contribute to the appeal.

You are ready to try it, but still wonder- Is Acorns legit and Safe?

Just know, the Acorns website and the Acorns app are secured with 256-bit encryption and are a member of SIPC… so securities in your account are protected up to $500,000.

This ensure quite a bit of security and safety when using their services.

Our take away?

If you’re looking to start investing or diversify your portfolio with little effort, Acorns offers one of the best solutions available.

We say, embrace the power of micro-investing and get yourself set up on the path to financial growth with Acorns.