The Acorns App

Question


Hi Barefoot,

I was wondering if you could look into ‘Acorns’ and give us your thoughts. This new investing app was on the news last week.

Thanks,

Monique

Scott's Answer


Hi Monique,

In the last few weeks I’ve had a closer look at Acorns.

It’s basically just an app designed to make investing small amounts of money easy.

The app collects small amounts from your bank account (like rounding up your purchases), so it’s like investing loose change. You can set it to regularly drag money out of your account as well. Acorns then invests your money into Exchange Traded Funds (ETFs).

My problem with these ‘robo-advice’ apps (as they’re sometimes called) is that they add another layer of fees. It’s cute if you’re just getting started (you have to be over 18 to have an account), but if I were serious about investing my savings, I honestly don’t think I’d bother.

Scott