Acorns Expands Micro-Investing Model to Childhood with Acorns Early
Acorns, America’s steadily growing platform for savings, investments, and retirement is expanding its offering via Acorns Early program. The new feature will be the extension of the current Acorns Family plan. To incentivize young families and celebrate this new feature, Acorns Early will offer a free investment account if your child is born in 2020, right up until your child turns 18 and takes control of the UGMA account.
The Benefits of Acorns Early Explained
When you think about investments, an image of high-end clients comes to mind who move large sums of money through platforms like Personal Capital. This is your classic investing model, boosted by modern FinTech to provide convenience and easily accessible expertise. On the other hand, Acorns approaches investments as a whole range of lifestyle tweaks that over time accrue significant assets.
In essence, Acorns facilitates micro-investing through continued use of its platform every time you use money. Everything you do on Acorns is a unified experience, including spending. On other platforms, spending is spending, but on Acorns, spending is a way to micro-invest money. Every time you buy something through their VISA debit card, Acorns rounds-up your purchase to the nearest dollar amount, and invests the round-up.
The app has seen notable success, and widely acclaimed as one of the top stock trading apps on the market.
Naturally, Acorns is affiliated with all sorts of brands and local businesses that provide further benefits. Within the Acorns ecosystem you have access to three types of accounts:
- Acorns Invest and Acorns Later – automated investment and retirement.
- Acorns Spend – every time you spend, your round-ups accumulate.
- Acorns Found Money – if you shop at Acorns’ many partners, you automatically generate bonus micro-investments.
And now, Acorns Early as the fourth type of account, a custodial UGMA account – Uniform Gifts to Minors Act – a legislative innovation refined in 1966 that removed the need for attorneys and tax specialists to set up trust funds for children. As you invest your round-ups with Acorns’ investment, checking, and retirement account, your kid can revel in the fruits of your daily micro-investments when he/she turns 18.
Acorns Early Free for Babies Born in 2020
If you are enticed by this ecosystem perfectly suited for the age in which half of Americans live paycheck to paycheck, you should also know that Acorns produces financial literacy content in collaboration with CNBC. Therefore, by the time your child grows up, the entire family should be well versed in relevant financial matters so they are on the right path to financial security.
Furthermore, Acorns’ pricing options demand paltry financial commitment:
- $1 per month for the Lite plan.
- $3 per month for the Personal plan.
- $5 per month for the Family plan – allows for adding multiple children without cost.
If you are fortunate enough to have a baby in this year full of turmoil, Acorns Early account will be free for the child until it reaches adulthood. Moreover, accompanying the Acorns Early launch, Acorns will set additional incentives in the form of good old referral bonuses:
- New Acorns Early clients will get $50 in their micro-investing account for every person they refer.
- Each person referred will get $10.
Closing in on 8 million accounts in the near future, Acorn represents a new wave of user-friendly, low-cost, mobile frameworks of supplanting and expanding traditional financial activities.
Adding to its credibility is Nobel laureate economist Dr. Harry Markovitz, who devised the automated investing algorithms working in the background while the client conducts shopping. By the list of its partners alone, from BlackRock to Walmart, Acorns is deeply seeded in the financial soil.
Do you think this novel approach to investment, retirement, and trust funds will bear sufficient fruit in the distant future? Let us know in the comments below.