Is Acorns Worth It for $3 a Month?

If you’re new to investing, this article will introduce you to the investment platform Acorns. This platform offers different options with their investment platform, which is geared towards “micro-investing.”

You can join their platform for $3 a month, but is it worth investing money in? Find out if this is the right app for you by reading on for our in-depth breakdown. 

What’s Acorns?

Acorns is an app that makes saving, investing, learning, and staying on track with financial goals easy. Their mission is to look after the economic best interests of the up-and-coming, beginning with micro-investing.

Compared to traditional investment platforms, Acorns’s fee structure is straightforward. The platform’s value proposition must be evaluated in light of these costs.

The Concept of Micro-Investing

Micro-investing is the basis of Acorns’s philosophy to make investing accessible and less intimidating. They believe small, consistent investments can lead to real gains over time. 

What Services Does Acorns Offer?

A fintech company that offers three main categories of services:

  • Exchange-traded funds (ETFs) are available for members to invest spare change in.
  • Provides users with the ability to fund and create IRAs.
  • Companies such as Visa provide debit cards to members.

Additionally, their website offers resources with learning information that can help you gain more confidence and continue investing for the future.

How Does Acorns Work?

Acorns offers a variety of options for you to have an enjoyable and straightforward way to manage your investments: 

Acorns Invest: Manage your money.

Acorns Later: Invest for your Retirement.

Acorns Banking: Open a banking account that puts investing at the center of your money. 

Acorns Early: Invest for your kids.

Acorns Earn: Earn bonus investments when you shop with top brands.

Acorns Learn: Grow your financial knowledge. 

What is Acorns best for?

This platform is most suitable for beginners who want to invest, hands-off investors, those who have trouble saving, and those who enjoy earning cash back. 

Fees and Costs Associated With Acorns

There are three subscription tiers, each with a different monthly fee: 

  • Personal: $3 per month. Includes access to Invest, Later, and Checking.
  • Personal Plus: $5 per month. Includes all the features of the Personal tier, plus Premium Education, Emergency Fund, and Earn Rewards Match.
  • Premium: $9 per month.

The minimum investment for Acorns is also $5. Trades are not subject to management fees or commissions. 

Other fees associated with Acorns include: 

  • Transferring ETFs: $35 per ETF
  • Selling investments: No charge

Acorns checking accounts have no fees for overdraft withdrawals, and ATMs are accessible at 55,000 locations.

Comparing Acorns to Other Investment Platforms

Robinhood Investing and Acorns Invest offer retail investors various products and account options. ETF investing is possible with either platform, offering spending perks and investing roundups. Robinhood can give you better exposure to stocks, ETFs, cryptocurrencies, and American Depositary Receipts (ADRs).

Stash will appeal to DIY, hands-on investors, whereas Acorns best suits those who wish to outsource managing their investment portfolio. 

What Is a Robo-Advisor?

Robo-advisors automate investments using algorithms, cost less than traditional advisors, and do not require a minimum balance. 

Newbies can use this feature to assist with investment selection and rebalancing their portfolios regularly. They may even optimize your returns using methods such as tax harvesting.

The Future of Acorns and Micro-Investing

As a result of increasing awareness about micro-investing and the growing popularity of micro-investment across the globe, the market for micro-investing platforms is forecast to grow at 21.1% CAGR between 2022 and 2032 in comparison to 19.0% CAGR from 2017 to 2021.

Due to the economic landscape’s volatility and inflation, more people have become interested in micro-investing in recent years.

Investing Wisely 

Besides offering an effortless way to invest and low-cost options for passive investing, this app is well-suited for folks who are both new to investing and interested in expanding their personal finance plans. 

Acorns offers a perfect blend of user experience mixed with an easy-to-use interface that makes it easier for new investors to explore their investment options. In addition, their educational content focuses on teaching users from various backgrounds about the benefits of investing. 

While fees and the lack of a tax strategy pose some issues, we hope the app will stay ahead of the game and make those arrangements so more people can join. Otherwise, if you’re looking for the cheapest option, you might be better off using Acorns, especially if you require a nudge to save.

Author: Luana Cantuarias

Title: Contributing Writer

Expertise: Blockchain, B2B, and SaaS

Bio:

Luana Cantuarias is a seasoned finance writer with over a decade of experience in the realms of Blockchain, B2B, and SaaS.