About a month ago, I heard a couple of co-workers talking about their ‘acorns.’ I heard them talk about it before so I asked, “What exactly is an acorn?”
They introduced me to a program where you invest your spare change automatically into an online savings account. The account is equivalent to an actual savings account you would find at a bank.
Acorn is an app (accessible from your mobile device or desktop.) It costs a dollar a month and regularly accesses your bank account to view the amounts you spend. For each transaction, Acorn calculates the pennies needed to round-up to the next dollar. It then takes those pennies and deposits them into your Acorn account. Once in your Acorn account, the round-ups (and any other money you deposit) is invested into your choice of a low-risk to a high-risk investment account. The money you deposit can be withdrawn at anytime without penalty. It does take a few days to return to your bank account.
I’ve been using Acorn for a month so I thought it would be a good time to tell you how it is going.
- Total round-ups deposited in July 2018 = $ 63.83 (This is about $16 per week.)
- Total additional amount deposited = $ 5.00
- Total amount earned by signing up for Acorns = $ 5.00
- Total amount earned by introducing a friend who signed up on Acorns = $ 5.00
- Total monthly fee = -$1
- Total gain/loss on account = +$0.14
- TOTAL BALANCE IN ACCOUNT = $ 77.97
My thoughts… Even though it has the potential to grow from investments, I see it more as a tool to save money and forget about it. Think about it… I now have almost $80 in a savings account that I likely wouldn’t have saved any other way. If I were to keep this up, by the end of the year, I will have saved between $900 and $1,000. I guess it would be true to say that from acorns, might oaks do grow.
If you’re interested in trying Acorns out yourself, please use this link. https://acorns.com/invite/VSG5NK