Acorns: Micro-Investing Made Simple
Acorns pioneered micro-investing by making it possible to invest your spare change automatically. This complete guide explains how Acorns works, whether the fees are worth it, and how you can grow your wealth starting with just pocket change.
📺 Watch the Complete Acorns Tutorial
This 10-minute tutorial shows you how to set up and use all Acorns features.
📊 Quick Facts About Acorns
💡 Smart Investor Tip
Combine round-ups with recurring investments. Start with $5/week automated investments along with your round-ups. This builds your portfolio faster while keeping it affordable and automatic.
📱 How Acorns Works: Step by Step
Download & Sign Up
Download the Acorns app and create an account. Answer questions about your income, investment goals, and risk tolerance. No minimum deposit required to start.
Link Your Cards
Connect your debit/credit cards to Acorns. The app uses bank-level security (256-bit encryption) and read-only access. Your cards remain with your bank.
Choose Your Portfolio
Select from 5 pre-built portfolios (Conservative to Aggressive) based on your risk profile. Acorns automatically invests in diversified ETFs across thousands of companies.
Start Rounding Up
Every time you make a purchase, Acorns rounds up to the nearest dollar and invests the spare change. Example: $3.75 coffee → $0.25 invested. Set multiplier (2x, 3x, 10x) for faster growth.
Watch Your Money Grow
Acorns automatically invests when your round-ups reach $5. You can also set up recurring investments and one-time deposits. Track growth in the simple, clean app interface.
🌰 Round-Up Example: How Spare Change Adds Up
Daily Purchases: Coffee ($4.25), Lunch ($12.50), Gas ($36.75), Groceries ($58.30)
Round-ups: $0.75 + $0.50 + $0.25 + $0.70 = $2.20 invested that day
Monthly Total: $2.20/day × 30 days = $66 invested per month without feeling it!
📈 Acorns Portfolio Options
Acorns offers 5 pre-built portfolios based on Modern Portfolio Theory:
Conservative
- 100% Bonds
- Lowest risk
- Stable returns
- Best for short-term goals
Moderately Conservative
- 60% Bonds, 40% Stocks
- Low-medium risk
- Balanced approach
- 3-5 year goals
Moderate
- 40% Bonds, 60% Stocks
- Medium risk
- Most popular choice
- 5-10 year goals
Moderately Aggressive
- 20% Bonds, 80% Stocks
- Medium-high risk
- Growth focused
- 10+ year goals
Aggressive
- 100% Stocks
- Highest risk
- Maximum growth
- Long-term investing
💰 Acorns Pricing Plans
| Plan | Monthly Cost | Includes | Best For |
|---|---|---|---|
| Lite | $3/month | Investing account only | Round-up investors |
| Personal | $5/month | Investing + Later (IRA) + Checking | Most users (best value) |
| Family | $9/month | Personal features + Kids accounts | Parents with children |
⚠️ Important Investment Considerations
- $3/month fees matter for small balances – $36/year on $500 is 7.2% fee
- Investing involves risk – Your portfolio value can go down
- Not for day trading – Acorns is for long-term, passive investing
- Consider tax implications – Acorns Later (IRA) has tax advantages
- Balance matters – Fees become reasonable at $1,000+ balances
- Review regularly – Check portfolio performance quarterly
✅ Advantages of Acorns
- Automatic investing – Set and forget approach
- No minimum balance – Start with $0
- Round-up feature – Invest spare change painlessly
- Pre-built portfolios – Professionally managed ETFs
- Acorns Later (IRA) – Retirement account option
- Found Money partners – Extra investments from shopping
- Educational content – Learn as you invest
❌ Limitations to Know
- Monthly fees – $3-$9 regardless of balance
- Limited investment choices – Only pre-built portfolios
- No individual stock picking – ETFs only
- Round-up minimum – Need $5 in round-ups to invest
- Slow withdrawal – Takes 3-6 business days
- App-focused – Limited web interface
- Fee impact on small accounts – High percentage on low balances
📱 User Reviews
Here’s what users are saying about Acorns investing:
❓ Frequently Asked Questions
It depends on your balance. At $500, $36/year is 7.2% – very high. At $3,000, it’s 1.2% – reasonable. At $10,000, it’s 0.36% – competitive. Acorns is best for beginners who value simplicity and automation over cost. Consider switching to a free platform once your balance grows and you’re comfortable investing.
Acorns charges monthly subscription fees ($3-$9). They also earn small amounts from ETF expense ratios (0.03%-0.15%) that are built into the funds. Unlike traditional brokers, they don’t charge trading commissions or make money from payment for order flow.
Acorns uses round-ups from past purchases, not real-time checking. If your account has insufficient funds when Acorns tries to invest (once round-ups reach $5), the transaction will fail and retry later. No overdraft fees from Acorns, but your bank might charge fees if you enable overdraft protection.
Disclaimer: This guide is for educational purposes only. I am not a financial advisor. Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. *Acorns is a registered investment advisor. Brokerage services by Acorns Securities LLC, member FINRA/SIPC.
Affiliate Disclosure: This article may contain affiliate links. I may earn a commission if you sign up through my links, at no additional cost to you.
💬 Questions About Micro-Investing