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What is Acorns?

Acorns is an application that automatically rounds up each purchase you make to the next dollar and invests it for you!  How cool is that?


When you spend $23.26 on an item, how do you record it?

A.  $23.26 – Tracking your spending is tedious enough, why do I need to track each penny?

B.  $23.00 – Well, it’s closer to $23, but it’s actually more than $23.

C.  $24.00 – I’ll put down $24 even though I didn’t spent that much.

With Acorns, the correct answer is now always C.
With Acorns you can consistently track your spending by rounding it up to the nearest dollar.  Even if you don’t use Acorns, rounding up with spending is psychologically the best thing to do.  You will think you’re spending more than you actually are, which means you have more money than you actually do!

How does the Acorns round-up feature actually work?

Example:  Your Acorns will be funded in $5.00 increments.  If you spend $17.75 on an item from a linked account, it will then put $0.25 towards the $5.00 goal.   Once you have built up $5.00 in round-ups, Acorns will then charge your funding source that amount.  You can link unlimited banks or credit cards to be rounded up.

Acorns Found Money

Acorns provides other ways to invest as well, their Found Money option is always adding new opportunities to earn money.  You can also have recurring or one-time investments in amounts from $5 – $5,000.  You have the option to do this at anytime and you can also withdrawal whenever you like as well.  Acorns will also invest $5 for you every friend you refer to them as well!

How much does Acorns cost?

Acorns charges you $1 per month if your account is less than $5,000 and then 0.25% per year for account greater than $5,000.

Why not to get Acorns?

Since starting my Acorns account on May 25, 2017, I have grown my account balance to $260.40 as of December 9, 2017.  During this time, I have not done any recurring or one-time investments.  I have earned $6.23 in market gains and dividends, but I have had to pay a $1.00 fee 6 times over this time frame bringing my total gains to $0.23.  My total gains will increase as my investments grow though.

Why get Acorns?

I have accumulated $260.40 since starting my Acorns account.  To me, that is free money that I have already considered spent and have debited on my budget spreadsheet.  That money, along with my $304 I have earned in cash back from my American Express Everyday credit card and $74 I have accumulated on my Discover Card that offers rotating 5% cash back bonuses, comes to a grand total of $638 in free money, just for buying things that I would have bought anyways!  That’s almost $60 a month, just for using an AcornsAmerican Express Everyday credit card, and a Discover credit card.  I pay off 100% of my balance each month on my credit cards.