How to Actually Make Money Using the Acorns Investing App
Tossing spare change into a piggy bank is an excellent way to reach your financial goals — if you’re saving up for a Lego set. But learning how to invest money by putting it somewhere it may actually grow can build wealth for the future.
You might assume you need a huge wad of cash to start investing, but fintech (financial technology) companies have changed the investing landscape for the better. Now, you can invest a little at a time, putting your spare change into stocks, bonds, and other securities. With diversified portfolios, you can watch your money grow, whether you have $5 a month to put aside or $500.
It’s a compelling way to save for the future, but it’s not for everyone. Read on to find out if investing with Acorns is the right move for you.
What Is Acorns App?
Acorns app is a micro-investing app that makes saving easy. It saves, invests and earns money for you. When you create an Acorns Investment Account and then connect a credit or debit card to it, Acorns rounds up your purchases on the linked credit or debit cards to your Acorns account and then invests the change automatically into an investment portfolio.
You can create an IRA that is best for your retirement if you sign up for Acorns. If you want more benefits, then you can register for Acorns Spend account – a checking account that comes with a debit card that saves, invests, and earns for you, plus includes all benefits of Acorns Core and Acorns Later. With the Acorns app, you can save, invest, and earn money.
Invest Your Spare Coins
This is the main concept, and a quite ingenious one we must say, around which the Acorns app is built.
The idea is to invest any loose change that accrues from your day to day transactions.
Every time you go to a restaurant, the grocery store, or the supermarket and make any purchase, there is an opportunity to invest. This applies only to the debit and credit cards that you have linked to the app.
For instance, if you make a purchase worth $7.25, Acorns will automatically channel $0.75 to your holding account for investment.
Automate Weekly and Monthly Investments
People don’t become wealthy overnight; it’s usually through regular contributions to their savings and investing accounts. Automating your savings with Acorns is an easy way to start a rich habit because Acorns does the heavy lifting of transferring the same amount of cash into your Acorns account on the scheduled day. Unlike humans, computers don’t forget!
You can designate weekly or monthly contributions and Acorns lets you pick the day and the transfer amount. Weekly investments always take place on the same day of the week–every Monday for instance– and monthly deposits occur on the same day each month, like the 1st of every month.
On the Acorns dashboard, you have the option of investing $5, $10, $15, or $20 per week, but you can choose a different amount as long as it’s at least $5. You might decide to invest $100 each month and it only takes a few seconds to type in your custom amount and Acorns takes care of the rest.
Acorns Spend is an all-digital banking system with direct deposit, a debit card, mobile check deposit, and more. It’s just like having a bank account, except made for the 21st century.
While there are lots of features to like about Acorns Spend, for the purposes of making money with Acorns, the best one is the ability to get up to a 10% bonus deposited in your investment account just by using your Acorns debit card.
Similar to Found Money, when you use your debit card to make purchases at certain retailers, you can get up to 10% bonus cash back deposited into your investment account. Yes, 10%!
Another way to make money is a feature on the app called Acorn Earn. Acorn Earn helps you earn money as you shop through their rewards program so that you can save and invest more. Formerly known as Found Money, you can use their Chrome browser extension or app to automatically receive bonus investments when making everyday purchases with their 9,000+ partners.
Some of their partners include Airbnb, Walmart, Nike, and Sephora. These rewards are typically invested into your Acorns investment account between 90 and 120 days after making a purchase.
Who should use Acorns?
Acorns is an ideal investment platform for:
- New investors – Acorns is an excellent investment app for millennials and young investors. It’s an easy way to develop healthy financial habits, and the long-term nature of Acorn’s investments suit anyone who wants to benefit from compounded returns over a longer period.
- Investors looking for a more passive form of investing – If you don’t want to deal with a financial advisor or simply want to automate your investing, Acorns is a good platform for you.
- Investors looking to save for retirement and their family’s future – Acorns lets you invest in an IRA and set up a custodial investment account for your children
Is Acorns legit?
Yes. Acorns Advisers is a registered investment advisor with the US Securities and Exchange Commission (SEC). Acorns Securities, an SEC-registered broker-dealer, offers its brokerage services and is a member of the Financial Industry Regulatory Authority (FINRA). And as members of the Securities Investor Protection Corporation (SIPC), the securities in your account are insured up to $500,000.
So, is Acorns a good investment?
Yes. The Acorns app works if you would like to use it for entertainment instead of already meeting your other financial goals.
Alternatively, investing with Acorns can be a good “sandbox” for beginner investors to learn the stock market basics.