Are you looking for an app that helps you automatically invest your spare change money and help you earn in the long run?
Well, Acorns is such an app that takes the concept of easy investing and makes it automatic. Acorns offers a micro-investing app that helps people save and invest for their future.
Your minimum investment is as low as $5. And there’s no account minimum to get started.
In this article, you will learn about what Acorns App is, how the Acorns app works, its features, its pros and cons, how Acorns makes money, and how to make money with Acorns App.
What is Acorns App? Acorns App Explained
Acorns is a fintech platform that allows its members to invest by regularly saving small sums of money, an approach called micro-investing, to save for the future & retirement.
It is a popular investment app that aims to help individuals grow their wealth by regularly investing small amounts of money.
It lets you invest your spare change from every purchase you make on linked credit or debit cards. The money can go directly into the investment accounts that match your risk tolerance.
Acorns help you save, invest, and learn from one easy app.
It offers access to its robo-advisor platform, tax-advantaged retirement IRAs, and a checking account. Its main micro-investing feature allows investors to start small by investing in spare change from everyday purchases. It is designed for novice investors looking to get their feet wet in the stock market.
Also, while it is designed to assist users in saving and investing, it’s essential to understand that investing always carries some risk, and there are no guarantees of making money. The app also offers essential banking services at low fees.
Key Takeaways
- Category: Investment Services
- Known For: Automated Saving Tool
- Description: Acorns offers a micro-investing app that helps people save and invest for their future. Over 3 million Americans use Acorns to help set aside a little from everyday purchases.
- Cashback Offers: Acorns offers cash back at over 450 retailers.
- Account Minimum: $0 to open an account; $5 is required to start investing.
- Account Management Fees: $3, $5, or $9 monthly.
- Promotion: Get a $5 referral bonus when a friend signs up for Acorns
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How Do Acorns App Work?
Acorns operates on the principle of micro-investing. It automatically rounds up your everyday purchases to the nearest dollar and invests the spare change into a diversified portfolio of exchange-traded funds (ETFs).
Acorns takes your excess change from every purchase using a linked account into an investment portfolio.
For example, when you purchase a coffee for $3.25, Acorns rounds up to the nearest dollar and invests the spare $0.75 cents into the market.
Micro-investing is a strategy in which your contributions add up over time. It’s a good strategy for newbies who want to dip their toes into the investing pool before diving in fully.
You can connect as many cards as you want, though all roundups are taken from the same linked checking account. With each purchase, Acorns rounds up to the nearest $1, allowing you to transfer that change into an investment portfolio.
You can do that either automatically, so every purchase is rounded up and the change transferred, or manually, by going through recent purchases on the app and selecting which roundups to transfer.
You can also invest lump sums amount manually or set up recurring deposits on a daily, weekly, or monthly basis. Lump-sum transfers may be as small as $5.
How To Make Money with Acorns App?
The potential to make money with Acorns depends on various factors, including market conditions, investment performance, and the amount of money you contribute.
Here are some of the ways to increase your chances of making money investing with Acorns:
- Regularly Contribute To Your Account: Consistently adding funds to your Acorns account increases your investment potential over time. Set up automatic contributions or make regular manual deposits to maximize the app’s benefits.
- Diversify Your Portfolio: Acorns offers different investment portfolios based on risk tolerance. Diversification helps mitigate risk by spreading your investments across various asset classes. Consider selecting a portfolio that aligns with your risk tolerance and long-term goals.
- Stay Informed on Market Trends: Keep yourself updated on market trends and economic news that may impact your investments. Acorns provides educational resources, but it’s also beneficial to conduct your own research and stay informed about the broader investment landscape.
- Take a Long-Term Perspective: Investing is typically most successful when approached with a long-term mindset. While short-term fluctuations can occur, staying invested over the long term may increase the likelihood of positive returns.
However, it’s important to note that investing in the stock market involves risks, and the value of your investments can fluctuate. Some months, you may experience gains, while others may result in losses.
Acorns App Explained
Investing with Acorns aims to simplify the investment process for beginners by offering a user-friendly platform and automated portfolio management. However, it’s essential to have realistic expectations and a long-term investment strategy.
The app provides options for conservative, moderate, or aggressive investment portfolios, allowing you to choose the level of risk that aligns with your financial goals and risk tolerance.
Automatically Save And Invest in Your Future With Acorns
Earn a $20 bonus after setting up recurring investments in a new Acorns account.
How Acorns Make Money?
Acorns is a micro-investing platform that makes money through membership fees.
Acorns charges a monthly fee, which varies depending on your account type. This fee can impact your overall investment returns, especially if you have a smaller account balance.
Acorns App Fees, Plans, and Costs
Acorns offers three subscription tiers to choose from – Personal, Personal Plus, and Premium – each of which offers various investing accounts at different monthly price points ($3, $5, and $9, respectively): services:
- Personal Plan: $3 per month, which gets you an individual investing account, an IRA, and a checking account.
- Personal Plus Plan: $5 per month, all the features of the Personal tier, and adds a premium education account, emergency fund, and an opportunity to earn a rewards match.
- Premium Plan: $9 per month, adds a benefits hub, custom portfolios, higher rewards matching, and an Acorns Early account, which allows you to set up custodial accounts for your children.
The Personal plan will help you get started with investing, save for retirement, and even come with a cash management account. At $3 a month, it’s a pretty good deal unless you’re dealing with small sums. But as your account grows, the fee will decline on a percentage basis.
While the app boasts an affordable investing option for newbies, the monthly fee can consume a big chunk of your returns if you only put away a few dollars each month.
Note: To really take advantage, set up a larger recurring deposit into your Acorns investment account in addition to any spare change that gets swept up.
Acorns Pros and Cons: Acorns App Explained
Pros
- $0 minimum deposit to open an account
- Automatically invests the spare change
- Easy-to-use app
- Cash back at select retailers.
- Educational content available.
- Automatically rebalances portfolio
- Straightforward pricing
- Checking accounts for members
Cons
- High fee on small account balances.
- No tax-loss harvesting
- No human, financial advisors
- Investment options are limited
Harness the power of compounding.
With the Compounding effect of Acorns micro-investing, your money can grow on itself. It’s a long-term investing principle foundational to how Acorns can work for you.
Official Acorns Website
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Is Acorns App Worth It?
Many individuals have found Acorns to be a rewarding venture, as it accumulates profits over time through investments in the stock market and various securities.
Take the experience of a Reddit user who shared their Acorns journey starting from June 2016. They opted for a reasonably aggressive portfolio. Their investment journey began modestly, a path often chosen by Acorns users, and gradually, they escalated their investment contributions. At present, they are proudly allocating $250 every week, leveraging a 10X multiplier on credit card round-ups.
To put it simply, for every $5 collected from credit card round-ups, a substantial $50 finds its way into their Acorns account. Fast forward to now, and this individual asserts that since 2016, they have effectively saved and invested an impressive $52,758 through Acorns, yielding them a remarkable profit of $10,926.
This translates to a remarkable stock market gain of over 26%! So, the question of whether Acorns holds genuine worth becomes quite challenging to contest.
In conclusion, the evidence strongly suggests that Acorns indeed offers a worthwhile investment opportunity.
You might like it: 10 Useful Guides on How to Use a Personal Loan?
Investing with Acorns
Over 3 million Americans use Acorns to help set aside a little from their everyday purchases.
Acorns help you invest and save for your future. With over 20 million downloads and $15+ billion invested for their customers since launch, they are an ultimate investing and money-saving app.
Get started in minutes, and give your money a chance to grow in the background of life.
Alternatives to the Acorns App
There are a number of alternatives to the Acorns App, including:
Customer Reviews and Testimonials of Acorns App
Acorns App has received positive reviews from customers. Here are a few examples:
- “I just do a little monthly, but it is compounding now. I am excited about the ease, and you can do round-ups also if that helps to start.” – Palma R.
- “I like how easy it was to link my bank and set an auto withdrawal weekly to invest money without having to do it manually. Super easy to set up and check your growth.” – Ryan P.
- “The best part of Acorns is that you won’t even notice the money missing out of your bank account. It just rounds your purchases up to the next dollar, takes that change, and invests it. It is a super easy way to invest money painlessly. You also sometimes get retailer kickbacks, which is always appreciated.” – Lissa H.
The Bottom Line: Is Acorns App Worth It?
For those who want to invest their money but don’t know where to start, Acorns is a suitable platform for beginners.
It is actually simple to make the most out of the Acorns App, all you have to do is spare your change on every purchase and get the occasional retailer kickback. The automatic roundups at Acorns App make saving and investing easy and you will be surprised by how quickly those pennies accumulate and compound over a long time.
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- Open an Acorns account (new users only)
- Set up the Recurring Investments feature
- Have your first investment be made successfully via the Recurring Investments feature.
FAQs – Acorns App Explained
Is the Acorns app really worth it?
Yes, it is worth it, given that you keep contributing to your account regularly, diversify your portfolio, and think for the long term. You can potentially increase your chances of making money with the Acorns app.
Can We Make Money with Acorns App?
Yes, you can make money with Acorns App. Rather than taking Acorns as a side hustle or quick money-making app that pays you, Think of it as a tool to grow the money you already have with consistent saving and investing.
Has anyone made money on Acorns?
Acorns app lets its users make money and build wealth through long-term investing. You can also make free money with Acorns by shopping at 350+ Acorns Earn partners. It has over 8 million customers & $3 billion in assets under management.
How do Acorns make money?
Acorns makes money by charging users monthly subscription fees depending on their plan. It also makes money from interchange fees on purchases from its Acorns Spend debit card.
