Pro's and Con's Of Acorns App In 2024

 


What Is The Acorns App?

Acorns is a user-friendly app designed for beginner investors. It is a perfect starter investing app for people who have zero knowledge about stocks or bonds. If you need something simple and beginner friendly then Acorns is the perfect solution.

Pros of Acorns

Here are some pros of using the Acorns investing app:

Ability to invest spare change through roundups

This feature is pretty cool. With Acorns, every time you make a transaction with a linked debit or credit card, it rounds up the amount to the nearest dollar and invests the spare change. So, that 50 cents you would have just forgotten about? Yeah, it's going towards your investments now. It's like magic, but with money.

How the roundups feature helps build a habit of saving

Saving money can be hard. But with Acorns, it becomes a habit. By automatically rounding up your transactions, it encourages you to save without even thinking about it. It's like having a personal financial coach whispering in your ear, "Save that money, honey!"

Cash back option for shopping through partner companies

Who doesn't love cash back? Acorns has partnered with various companies, to offer cash back when you shop through their app. So, if you're already shopping at these places, why not earn some extra money for your investments? It's like getting paid to shop.

Access to educational content for investment knowledge

Investing can be intimidating, especially if you're a newbie. But Acorns has got your back. They provide educational content, like articles and news updates, to help you learn more about investing. It's like having your own personal finance professor in your pocket. Knowledge is power, my friend.

Low cost to open an Acorns account and start investing

With Acorns, there is a monthly fee of $3 for the basic invest account. That's very reasonable really. They do have some higher tier options of $5 and $9 which offer different options. But you only really need the $3 option if you're just starting.

Cons of Acorns

Here are a few cons that you should consider:

Limited investment portfolio options

Acorns offers a total of five portfolio options for you to choose from. Now, for some people, this might be more than enough. But for those who want more control and flexibility over your investments, this can be a major downside. 

Inability to choose specific ETFs or individual stocks

For some of you, investing is all about the thrill of choosing specific ETFs (Exchange-Traded Fund) or individual stocks. You want to do your research, analyze the market, and make your own decisions. But with Acorns, you don't get to do any of that. They choose the ETFs for you based on your portfolio selection, and you just have to sit back and watch.

Final Words On Acorns

For beginners, Acorns is a great stepping stone into the world of investing. It's simple, user-friendly, and helps build good saving habits. Plus, you can start with just $5.

As you progress and gain more knowledge and experience, you might want to explore other investment options that offer more control and flexibility. Acorns may have some limitations, such as a limited investment portfolio and additional costs for certain features.

But nobody said you have to stick with Acorns forever. It's a great starting point, but don't be afraid to spread your wings and try new investment platforms when you're ready.

Also be sure to check out some of my other money related articles

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