I started investing my spare change with this service called Acorns and have enjoyed every minute of it. It is very satisfying to see your money grow. Especially money you don’t even notice going to investments
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Here’s the ways I use Acorns and have had success with:
- Round-ups: I linked my most used credit cards to Acorns and it’ll round up every transaction to the nearest dollar. I also set transactions ending in .00 to round up $1 (a $3.00 transaction will round up and invest another $1 in my account)
- Recurring, Weekly Deposits: I chose something small enough that I wouldn’t notice it isn’t even there. I started at a meager $5/week and now I’m up to $10/week.
- Acorns Earn: I use any of the plethora of services listed on Acorns and earn cash back towards my investments. Examples I use a lot are Uber, Uber Eats, 1-800-CONTACTS, and Ticketmaster. There are plenty ways to make a few extra bucks for using services you would use anyway!
How Acorns Actually Works
Acorns is a micro-investing app that rounds up your everyday purchases to the nearest dollar and invests the spare change. Buy a coffee for $3.75? Acorns rounds up to $4.00 and invests the $0.25 difference. It sounds small, but these round-ups compound over time.
Behind the scenes, Acorns invests your money into diversified ETF portfolios designed by Nobel Prize-winning economist Dr. Harry Markowitz. You don’t need to pick individual stocks or time the market — the app handles asset allocation based on your risk tolerance.
The Five Portfolio Options
When you sign up, Acorns asks about your age, income, and investment goals to recommend one of five portfolios:
- Conservative: Mostly bonds, minimal stock exposure. Best for short-term savings.
- Moderately Conservative: A blend leaning toward bonds. Good for risk-averse investors.
- Moderate: A balanced 50/50 split between stocks and bonds.
- Moderately Aggressive: Stock-heavy portfolio for medium to long-term growth.
- Aggressive: Almost entirely stocks. Best for young investors with a long time horizon.
For most tech workers in their 20s and 30s, the moderately aggressive or aggressive portfolios make sense. The SEC’s guide to ETFs explains why diversified funds are considered a cornerstone of long-term investing.
Beyond Round-Ups: Recurring Investments
Round-ups alone won’t build serious wealth. The real power of Acorns comes from setting up recurring investments. Even $5 or $10 per day adds up to $150-$300 per month. Combine that with round-ups, and you’re consistently putting money to work in the market.
Acorns also offers Found Money — cashback from partner brands like Nike, Walmart, and Apple that gets invested directly into your portfolio. It’s essentially free money invested on your behalf when you shop at participating retailers.
Acorns Pricing: Is It Worth the Fees?
Acorns charges $3/month for the basic plan (Acorns Personal) which includes investing, retirement account (IRA), and a checking account. For $5/month, the Family plan adds investment accounts for kids. While $3/month is insignificant once your balance grows past a few thousand dollars, it represents a high percentage fee on very small balances.
Pro tip: If your balance is under $500, the $3/month fee is effectively a 7.2% annual fee — much higher than a traditional brokerage. Build up your balance quickly with recurring investments to make the fee structure work in your favor.
Getting Started Today
The hardest part of investing isn’t picking the right stocks — it’s starting at all. Acorns eliminates every excuse by making investing automatic and painless. Download the app, link your debit card, set up a $5/day recurring investment, and let compound interest do its work over the next decade.
For more practical tech and finance tips, explore the GTWebs blog where we cover tools and strategies for tech-savvy individuals.
