Acorns Review 2023: Pros, Cons and How It Compares

In the hustle and bustle of the modern world, saving and investing money has become more important than ever. Yet, it also seems to be increasingly difficult due to the myriad of financial tools and platforms available, each promising to be the best. This article will delve into one such popular platform: Acorns. But is Acorns worth it? This comprehensive review aims to answer that question, helping you make an informed decision about whether or not to use this platform in 2023.

A key factor in determining whether a financial platform is suitable for you is understanding exactly what it is and how it works. Therefore, let's begin by introducing Acorns and the Acorns app.

What is the Acorns App?

Acorns is a micro-investing platform that promises to make investing simple and accessible to everyone. The Acorns app, available on both iOS and Android, allows users to invest their spare change by rounding up their purchases to the nearest dollar and investing the difference.

The app also offers a range of other features, such as retirement accounts, educational resources, and a recently added feature that allows users to invest in selected individual stocks. The goal of Acorns is to remove the barriers and complexities often associated with investing, making it easier for people to save and grow their money.

How does Acorns work?

Acorns operates on the principle of 'micro-investing', which involves investing small amounts of money regularly. Users link their bank accounts or credit cards to the app, and every time they make a purchase, the app rounds up the amount to the nearest dollar and invests the difference. This method of investing is called 'round-ups'.

For more hands-on investors, Acorns also offers a feature called 'Recurring Investments', where users can set a specific amount to be invested at regular intervals. In addition to this, Acorns provides users with a range of pre-built portfolio options based on their investment goals and risk tolerance.

Pros of using Acorns

There are several advantages to using Acorns. First and foremost, the app makes investing simple and accessible. The 'round-ups' feature allows users to invest without thinking about it, and the pre-built portfolios take the guesswork out of choosing investments.

Another significant advantage of Acorns is its educational resources. The app offers a wide range of articles and videos aimed at helping users understand the basics of investing. This is particularly beneficial for beginners who may find the world of finance daunting.

Finally, Acorns' features such as 'Found Money' and 'Earn' can help users increase their investments. 'Found Money' partnerships with brands allow users to earn extra money for their Acorns account when they shop with partner brands, while 'Earn' offers cash back on purchases made through the app.

Cons of using Acorns

Despite its many advantages, Acorns also has its drawbacks. One of the biggest criticisms of the app is its fee structure. While $1, $2 or $3 per month may not seem like a lot, these fees can eat into your investment returns, particularly if you're only investing small amounts.

Another downside of Acorns is that it offers limited investment options. While the pre-built portfolios can be beneficial for beginners, more experienced investors may find the lack of choice frustrating.

Lastly, the 'round-ups' feature, while innovative and convenient, may not lead to significant investment growth. The small amounts invested through 'round-ups' may not be enough to achieve substantial returns, particularly when taking into account the monthly fees.

Is Acorns worth it? An in-depth analysis

The question of whether Acorns is worth it depends largely on individual circumstances and investment goals. For those who struggle to save or invest money regularly, the automatic 'round-ups' and 'Recurring Investments' features could be beneficial. The app's simplicity and educational resources also make it an excellent choice for beginners.

However, the monthly fees and limited investment options may not suit everyone. More experienced investors or those with larger amounts to invest may find better value elsewhere. Ultimately, determining if Acorns is worth it requires careful consideration of these factors and personal financial goals.

Comparing Acorns with other investment apps

When comparing Acorns with other investment apps, it's essential to consider factors such as fees, investment options, and user experience. Apps like Robinhood and Stash, for example, offer a broader range of investments and lower fees, making them potentially more suitable for experienced investors or those with larger amounts to invest.

However, Acorns' simplicity and automatic investment features set it apart from other apps. For those new to investing or struggling to save regularly, these features could make Acorns the better choice.

User feedback: Acorns app review

User feedback plays a crucial role in evaluating any product or service, and Acorns is no exception. Reviews of the Acorns app are generally positive, with users praising its simplicity and the convenience of the 'round-ups' feature. However, some users have criticised the app's fees and limited investment options, echoing the concerns raised earlier in this review.

Tips for getting the most out of Acorns

To get the most out of Acorns, it's important to use all the features the app offers. Set up 'Recurring Investments' in addition to 'round-ups' to boost your investment amount. Make use of the 'Found Money' and 'Earn' features to earn extra money for your Acorns account.

Also, take advantage of the educational resources available on the app. Understanding the basics of investing can help you make more informed decisions and feel more confident in your investment journey.

Conclusion: Should you use Acorns in 2023?

In conclusion, Acorns offers an innovative and user-friendly platform for investing, making it a great option for beginners or those who struggle to save regularly. However, its monthly fees and limited investment options may be a deterrent for some.

Whether you choose to use Acorns in 2023 will depend on your individual circumstances and financial goals, so it's important to consider these factors carefully. As with any financial decision, it's recommended to do your own research and consider seeking advice from a financial advisor.

Do you have unpaid credit cards?

Gauss money can help pay off your credit cards easily. Pay off any credit card balance using a low-interest credit line from Gauss. You’ll save with a lower APR and you can pay off balances faster. Gauss offers no annual fees, no origination fees, and no fees of any kind. Check out Gauss for a lower APR today to maximize your credit cards.

Additionally, use tools like the credit card payoff calculator to visualize your progress overtime, and get insights into how much you should put towards your debt to achieve your debt free date. Our debt payoff calculator and debt tracker is 100% free to use via our website or our mobile app.