Acorns – Everything you need to know

Acorns is a financial technology platform that offers a simple and accessible way for individuals to invest and save money. Founded in 2012, Acorns is renowned for its unique approach to investing, which involves rounding up everyday purchases to the nearest dollar and investing the spare change into a diversified portfolio. This “Round-Ups” feature makes investing effortless by allowing users to grow their wealth incrementally without requiring significant upfront contributions or active management.

Moreover, the core feature of Acorns is its automated investment service, which builds and manages a portfolio based on the user’s risk tolerance and financial goals. When users make purchases with linked debit or credit cards, Acorns rounds up the transaction amount to the nearest dollar and invests the difference. For example, if a user spends $3.50 on a coffee, Acorns will round up the amount to $4.00 and invest the additional $0.50. This approach helps users invest regularly without having to actively think about it, effectively turning small, everyday transactions into investment opportunities.

In addition to its investment services, Acorns provides several other financial tools through its app. The platform includes features such as Acorns Later, which is an IRA (Individual Retirement Account) service that helps users save for retirement with tax-advantaged accounts. Acorns Spend is a checking account with a debit card that integrates with the Acorns investment platform, allowing users to manage their spending and investing from a single account. This integration helps users seamlessly allocate their spare change into investments while managing their day-to-day expenses.

Likewise, Acorns also offers a feature called Acorns Found Money, which partners with various brands and retailers to provide cash-back rewards that are invested directly into users’ Acorns accounts. When users shop with participating brands, a portion of their purchase amount is invested into their Acorns portfolio, providing an additional way to grow their investments.

In summary, Acorns offers a user-friendly platform that simplifies investing by rounding up everyday purchases and investing the spare change into diversified portfolios. With additional features such as retirement accounts, integrated checking, and cash-back rewards, Acorns provides a comprehensive financial solution for users looking to grow their wealth with minimal effort.