How to Start Investing with the Acorns App

Acorns is a micro-investing app designed to make investing feel approachable, even if you've never invested before. The main idea is called Round-Ups: when you link a debit or credit card, every purchase you make gets rounded up to the nearest dollar, and that difference goes into an investment account. Buy a coffee for $3.40, and $0.60 gets invested. These small amounts add up over time.

To get started, download the Acorns app and create an account. You'll need to provide your name, address, Social Security number, and employment information — this is required by law for investment accounts. Choose an investment portfolio based on your comfort with risk. Acorns offers five options ranging from Conservative (mostly bonds, less growth but less volatility) to Aggressive (mostly stocks, higher potential growth but more ups and downs). If you're unsure, Acorns recommends a portfolio based on your age and goals.

Acorns charges a monthly fee: $3 per month for the personal plan (which includes a brokerage account and an IRA), or $5 per month for a family plan that adds investing accounts for kids. This fee matters more than it might sound — if your balance is small (say, under $1,000), you're effectively paying a high percentage of your investment in fees. The app becomes more cost-effective as your balance grows.

To speed up your investing, set up Recurring Investments — automatically invest $5, $10, or any amount daily, weekly, or monthly. This is separate from Round-Ups and helps your balance grow faster.

Acorns Later is a retirement IRA included in the subscription. If your employer offers a 401(k) match, prioritize contributing enough to get that match before using Acorns — that's free money you don't want to miss.

Acorns Checking is a linked bank account with a debit card and no minimum balance. Found Money is a feature where you earn cashback (invested automatically) when you shop with partner brands like Walmart, Nike, and Apple.

You can withdraw your money anytime — Acorns is not locked in. But note that selling investments may result in capital gains taxes, so consult a tax professional if you're unsure about the impact. Investing always carries risk, and your balance can go down as well as up.