Acorns, Save and Invest in Your Financial Future

Acorns is an investment app that was founded in 2012 by Jeff Cruttenden and Walter Cruttenden. The app aims to make investing more accessible to the masses by rounding up users’ purchases to the nearest dollar and investing the difference. This method, called “spare change investing,” allows users to effortlessly save and invest money without having to think about it.

In addition to spare change investing, Acorns offers other investment products, including Acorns Later, a retirement account, and Acorns Spend, a checking account that comes with a debit card and offers cash back on purchases. Acorns also offers educational content through its website and app, aimed at helping users become more financially literate.

As of 2021, Acorns has over 8 million users and has raised over $200 million in funding. The company has won multiple awards for its innovative approach to investing and has been featured in numerous publications, including Forbes and The New York Times.

Key features of the Acorns services include:

1. Spare change investing: Acorns rounds up users’ purchases to the nearest dollar and invests the difference.
2. Diversified investment portfolios: Acorns’ investment portfolios are diversified across stocks, bonds, and real estate.
3. Automatic rebalancing: Acorns automatically rebalances users’ portfolios to ensure they are aligned with their investment goals.
4. No account minimums: Acorns does not require a minimum amount to start investing.
5. Acorns Later: A retirement account that helps users save for their retirement.
6. Acorns Spend: A checking account that comes with a debit card and offers cash back on purchases.
7. Financial literacy education: Acorns offers educational content to help users become more financially literate.

• Easy investing: Acorns makes investing effortless and accessible, even for those who have never invested before.
• Automated savings: Acorns’ spare change investing feature makes saving and investing automatic.
• Diversification: Acorns’ investment portfolios are diversified, which helps to minimize risk.
• Low fees: Acorns charges low fees, making it an affordable investment option for users.
• Retirement savings: Acorns Later helps users save for their retirement, ensuring they are financially prepared for the future.
• Cashback rewards: Acorns Spend offers cashback rewards on purchases, which can help users save even more money.
• Financial education: Acorns’ educational content can help users become more knowledgeable about personal finance and investing.

• Limited control: Users have limited control over their investments and cannot choose individual stocks to invest in.
• Fees: While Acorns charges low fees, they can add up over time and may be higher than other investment options.
• No tax optimization: Acorns does not offer tax optimization features, which may result in higher tax bills for users.
• Limited investment options: Acorns’ investment portfolios are limited to stocks, bonds, and real estate, which may not suit all users’ investment preferences.
• Slow account growth: Due to the spare change investment method, it may take longer for users’ accounts to grow and see significant returns.
• Potential for overdraft fees: If users do not monitor their Acorns Spend account closely, they may incur overdraft fees.
• No human advisors: Acorns does not offer human financial advisors, which may be a disadvantage for users who prefer personalized financial advice.
• Limited customer service: Acorns’ customer service may be limited, which could be frustrating for users who need assistance with their accounts.

Two of Acorns’ closest competitors are Robinhood and Betterment.

Robinhood is an investment app that offers commission-free trading of stocks, options, and cryptocurrency. Like Acorns, Robinhood also offers a cash management account that comes with a debit card. However, unlike Acorns, Robinhood does not offer spare change investing or retirement accounts. Robinhood also does not offer educational content, so it may not be as beginner-friendly as Acorns. In terms of fees, Robinhood charges no fees for trading, but it does charge some fees for other services such as wire transfers and paper statements. Overall, Robinhood may be a good choice for active traders who are interested in individual stock trading, while Acorns may be a better choice for those who prefer a more hands-off approach to investing.

Betterment, on the other hand, is a robo-advisor that offers personalized investment portfolios based on users’ goals and risk tolerance. Betterment offers a wide range of investment options, including individual stocks and ETFs, and also offers tax optimization features. Betterment charges higher fees than Acorns, but it may be worth it for users who want more control over their investments and access to human financial advisors. Betterment does not offer a checking account or educational content like Acorns. Overall, Betterment may be a good choice for users who want more control over their investments and are willing to pay higher fees for personalized financial advice and a wider range of investment options.

In conclusion, Acorns is a great investment app for beginners or those who want to save and invest without putting in a lot of effort. Its spare change investing feature makes investing automatic, and users can also enjoy other investment products like Acorns Later and Acorns Spend. Acorns also offers educational content to help users become more financially literate. However, some users may find the limited investment options and lack of personalized financial advice to be a disadvantage. Additionally, while Acorns charges low fees, they can add up over time, so users should consider the costs carefully. Overall, Acorns is a good option for those who want an easy and affordable way to start investing. To learn more, visit the Acorns website or app store.