Saving for the Future: Acorns?
(FinancialHealth.net) – Even with the best intentions, the day-to-day expenses of mortgage payments, groceries and healthcare can make saving for emergencies or retirement feel nearly impossible.
Acorns is a new type of savings account app that could change everything. The idea behind this app and others like it is that their automatic round-up feature can make saving simple. In fact, since Acorns transfers the spare change from everyday purchases into a savings account, it makes saving possible when it feels like the extra money simply isn’t in the budget. Learn how to transform your savings habits with Acorns.
A New Way to Think About Saving
It isn’t abnormal to fall short of savings goals. In fact, a 2019 survey by GoBankingRates found 42% of Americans have less than $10,000 set aside for retirement. A similar survey revealed that many emergency savings accounts are even more bare, with over half of Americans admitting to having less than $1,000 in their savings accounts.
Acorns is a chance to think about saving in a new way, as a small and automatic habit that can happen every day. How does it work? Acorns links to debit cards and checking accounts. As these accounts are used for everyday purchases, the Acorns app gathers spare change and deposits it into the account of your choice.
Acorns Account Options
In 2012, Acorns began their quest to help more Americans save for the future with a fairly simple model. The spare change the app gathered was deposited into a savings account. Recently, their model has grown to include Acorns Later, which sends the spare change to investment accounts for long term retirement savings.
Acorns also offers debit and checking accounts. These options can be alternatives to linking your existing accounts to the app. Acorns has another perk called Found Money, which gives users an extra kickback for spending with companies that have partnered with the app.
Getting Started With Acorns
Acorns is a user-friendly app with automatic prompts that walk users through the process of linking their checking account and setting up savings or investment accounts. Since Acorns is equipped with 256-bit encryption, users can feel secure in knowing that their financial information is protected.
One thing worth noting is that Acorns isn’t a free service. Opening a checking account costs $3 each month and investment accounts cost between $1-$3 each per month.
Because of the associated cost, Acorns might not be the perfect savings option for everyone. For individuals who aren’t saving at all, however, the perfect option is really any option that helps them get started and Acorns does just that.
~Here’s to Your Financial Health!
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