Acorns: An app you might want to use

Financial App Spotlight

Want to start investing but don’t know how?

Start small. Acorns is the micro investing app that will take your spare change and start an investment account. They believe that anyone can grow wealth, and they show this by allowing their users to invest at their own speed with no minimum and no trade fees.

Acorns is great for beginners

Not only does Acorns allow you to start investing with little to nothing, they also educate you along the way. New investors will appreciate how they define key terms throughout their content and start you off on the right path by managing your portfolio for you. One of the hardest parts of investing can be diversifying a portfolio to properly serve your investment goals. Acorns takes care of this by asking a series of questions when you sign up so they can use their team of experts to diversify your portfolio for you.

 

The magazine WIRED said it best, “Acorns simplified the often tedious and complex process of investing. But that doesn’t mean the investment strategy is any less sophisticated.”

 

The questions Acorns asks cover employment status, yearly income, net worth, how long you plan on investing, and why you are investing to help determine which portfolio suits you best. An example can be seen below. Your answers to these questions can be changed as needed to adjust your portfolio. You can also adjust your portfolio manually separate from your profile questions.

Acorns is also free for college students with a valid .edu email address! This is great for students who are struggling to save. With Acorns they could get a head start.

 

So, is Acorns right for you?

Remember, there are no minimums and no trade fees, BUT for monthly fees, Acorns is $1 a month until you have $1,000,000 invested, $2 a month if you are investing and saving for retirement with Acorns, and $3 a month if you are investing, saving, and growing* with Acorns.

 

It is important to note that the monthly cost of Acorns can be relatively high compared to how much you will be probably putting away each month. This isn’t something that should completely deter you from using Acorns, but it is important to keep in mind as you  start investing. Nerdwallet summarizes Acorns fees relative to account balance nicely in their latest feature.

 

Read more on Acorns fees and their new growth opportunities

 

To recap, Acorns can be a great app for new investors to get their feet wet and learn how to invest properly. The app is so user friendly, and the best part about it is that you really don’t have to do anything after you link your financial accounts. The app does the work for you.

 

In my latest interview with Pamela, I asked her and her husband Dyalekt who later joined, their opinion on micro investing apps like Acorns. They are definitely fans, but I think Dyalekt said it best when he regarded that Acorns does a great job of teaching users how they should diversify their portfolios outside of Acorns as well. It’s all about learning after all. This could just be your first step.

 

Interested? Help me help you

If you’re interested in signing up, use my referral link and get $5. If you’ve tried Acorns or other similar apps and feel some type of way about them, let me know in the comments below.

 

*Acorns announced “A New Way To Grow” on their website earlier this spring. The program has yet to launch.

Written by Diarra Monet

Profile photo of Diarra Monet

Diarra is an experienced young writer who joins The Mogul Millennial excited to expand her repertoire in financial writing. She received her Bachelor of Science in Communication and Rhetorical Studies from Syracuse University where she focused on honing her writing and critical thinking skills. Originally from Dallas, TX, Diarra currently resides in New York City and takes great pride in stretching her dollars while not compromising quality purchases or her travels. In addition to traveling, Diarra enjoys various live performances, museum exhibits, and practicing film photography.

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