Money Saving App: Acorns

Acorns is a fairly new app that automatically invests your saved money into the market. It takes your loose or spare change from your bank account/debit card. Spare change from your bank account? How it works: say you spend $15.50 on an item, Acorns links to your bank and rounds the purchase to $16.00. It takes the fifty cents and invests it in the stock market. Acorns calls this a “round up.” Besides the round ups you can also make traditional deposits to the account.

My Experience

Saving money is one the more difficult things for me to do, since undergrad I have been saving on average 10% of my paychecks (I know it should be more like 20%), but it’s a manual action I make every two weeks.  I go online and perform the action, but honestly it’s a ton of times when instead of saving my 10%, I go and spend my 10% somewhere it shouldn’t be spent.  So, for me the novice investor, I loved the idea of Acorns as being another method to getting in the investment game and saving money. Acorns helps me achieve my goal of 10% of my income saved. In the last six months off of automation, I’ve invested a little over $600 of my “spare change” and received an averaged 4% return.

Conclusion

Acorns is a great option for putting that spare change to use. And the automation takes the pain away of having to deposit money in the account.

For the novice in stock market investing, this is a potential great introduction. You learn the ebb and flow of the market and you begin to understand the different approaches to stock investing as well.

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