Acorns to Oaks: Investing with the Acorns App
BY SPENCER HAGAMAN
The easy-to-use trading platform offered by Acorns allows amateur and beginning investors to turn pennies into big bucks tomorrow.
My mom has worked for stock brokerages and investment firms my entire life, so I have
always had an interest in the stock market. When I turned 18, my mom gave me control of an
investment portfolio she had started for me when I was younger.
Like me, the youth of today have had it beaten into their heads by parents, teachers, and
every other adult that they need to save and invest their money for their golden years. Stocks,
index funds, ETFs, options: exactly what they are and the best way to invest in them mystifies
many millennials as well as many adults. Because young adults have the ability to grow their
money for decades before their retirement, now is the best time to start investing. Five dollars
today can grow into hundreds of dollars in forty years.
There is a new way for people to start investing without any previous knowledge about
the stock market. Acorns, an investment app available on both Androids and iPhones, sets up a
stock portfolio that meets the needs and desired level of risk of any investor. Acorns is perfect
for the beginning investor because Acorns’ analysts and stock traders invest your money for you so that all you have to worry about is investing. What sets Acorns apart from other investment sites and banks is its “Round Ups” feature. Once a bank account is linked to Acorns, a debit or credit card can also be linked to Acorns so that when users make a purchase, Acorns rounds up to the nearest dollar and invests the change for the user. For example, if the user purchases a coffee for $4.23, Acorns will invest $0.73 for the user, totalling the purchase at $5.00.
These small Round Ups, while small in individual size, compound to add up to a sizeable
investment account. Ambitious users who want to grow their investment accounts even faster can also set up recurring monthly investments and can even make one-time investments if they so desire. Acorns is designed for investors just starting out with its Round Ups feature and small fee each month of $1. As users begin to understand investments and the stock market more, they can move to other trading platforms that allow them to have more control over their portfolios.
The most important advice for young investors today is to be patient, to keep learning,
and to keep investing. It takes time for investments to grow, especially when an investment
account is small. Acorns is designed for investors just starting out with its Round Ups feature
and small fee each month of $1.