What is: Acorn

Acorn is a popular investment app that allows users to invest their spare change from everyday purchases. It was founded in 2014 by Jeff Cruttenden and Walter Cruttenden with the goal of making investing more accessible and affordable for everyone. Acorn works by rounding up the user’s purchases to the nearest dollar and investing the difference into a diversified portfolio of exchange-traded funds (ETFs).

How does Acorn work?

Acorn works by linking to the user’s bank account and credit or debit cards. Whenever the user makes a purchase, Acorn automatically rounds up the transaction to the nearest dollar and invests the difference. For example, if the user buys a coffee for $2.50, Acorn will round up the transaction to $3.00 and invest the $0.50 difference. These small amounts can quickly add up over time and help users build a portfolio without even realizing it.

Benefits of using Acorn

There are several benefits to using Acorn for investing. Firstly, it allows users to start investing with small amounts of money. By rounding up everyday purchases, users can invest spare change without having to make large deposits. This makes investing more accessible for those who may not have a lot of money to invest initially.

Secondly, Acorn offers a diversified portfolio of ETFs. This means that the user’s money is spread across a range of different investments, reducing the risk of putting all their eggs in one basket. Acorn automatically rebalances the portfolio to maintain the desired asset allocation, ensuring that the user’s investments are always aligned with their goals and risk tolerance.

Another benefit of using Acorn is the ease of use. The app is user-friendly and intuitive, making it easy for even beginners to start investing. Acorn also provides educational resources and tools to help users learn more about investing and make informed decisions.

Acorn fees

Acorn charges a monthly fee for its services. The fee structure is tiered based on the user’s account balance. For accounts with a balance of less than $5,000, the fee is $1 per month. For accounts with a balance of $5,000 or more, the fee is 0.25% per year. Additionally, Acorn offers a premium subscription called Acorn Plus, which costs $3 per month and includes additional features such as a retirement account and a checking account with a debit card.

Is Acorn safe?

Acorn takes security and privacy seriously. The app uses bank-level security measures to protect users’ personal and financial information. It also employs encryption technology to ensure that data is transmitted securely. Acorn is a registered investment advisor with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), providing an additional layer of oversight and protection for users.

Who is Acorn for?

Acorn is designed for anyone who wants to start investing but may not have a lot of money to spare. It is particularly appealing to millennials and younger investors who are looking for a simple and automated way to invest. Acorn’s user-friendly interface and low entry barrier make it a popular choice for those who are new to investing.


In conclusion, Acorn is a powerful investment app that allows users to invest their spare change from everyday purchases. It offers a range of benefits, including accessibility, diversification, and ease of use. While there are fees associated with using Acorn, the convenience and potential for long-term growth make it a popular choice for investors. Whether you’re a beginner or an experienced investor, Acorn provides a user-friendly platform to start building your investment portfolio.