If you’re new to investing or simply looking for a simple, automated way to grow your savings, Acorns might be the perfect app for you. In this guide, we’ll walk you through how to use Acorns, from creating an account to setting up your investment preferences, navigating the platform, and taking full advantage of its features.
What Is Acorns?
Acorns is a micro-investing platform designed to make investing easy and accessible to everyone. The app automatically rounds up your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio. Whether you’re saving for retirement, investing for your kids, or just getting started, Acorns has multiple tools to help you stay consistent.
How to Use Acorns to Get Started
Let’s go through the process of setting up your Acorns account from scratch and preparing it for automated investing.
Step 1: Create an Acorns Account
To begin, click the link in the app or website description to receive a $5 welcome bonus. If you prefer to go directly to the site:
- Click Get Started
- Enter your email address
- Choose a password
- Continue by verifying your phone number
If you already have a Plaid account (used to connect your bank securely), the signup will be faster. However, even if you don’t, Acorns will walk you through the entire process manually.
Step 2: Personal Details and Identity Verification
Once your phone is verified, enter your:
- First and last name
- Date of birth
- Residential address
- Social Security Number (required for identity verification)
This is standard procedure for all financial institutions that offer investing services.
Step 3: Connect Your Bank Account
You’ll have two options here:
- Instant setup using Plaid
- Manual setup by entering your bank details yourself
Instant setup is faster and more convenient. Simply choose your bank (e.g., Bank of America), log in through Plaid, and grant Acorns permission to access your account for transactions and round-ups.
Step 4: Choose Your Subscription Plan
Acorns offers three monthly subscription tiers:
- Bronze ($3/month): Includes a basic investment account and the round-up feature.
- Silver ($6/month): Adds a checking account, automatic savings, and 1% retirement match.
- Gold ($12/month): Includes everything in Bronze and Silver, plus a 3% retirement match, investment accounts for your children, stock flexibility, life insurance, and more.
For demonstration purposes, we’ll select the Bronze plan.
Step 5: Set Up Your Investment Account
You’ll now answer a few questions that help Acorns recommend the right portfolio for you:
- Have you worked with a broker before?
- Are you subject to backup withholding?
- Are you a 10% shareholder or director of a public company?
Most people can simply answer “No” to these, but answer truthfully.
Next, enter:
- Your employment status
- Annual income
- Net worth
- Investment goals (e.g., growth, preservation, etc.)
- Your financial education level
- Whether you’re interested in investing for kids
Based on your answers, Acorns will recommend a portfolio.
Step 6: Review Your Suggested Portfolio
Acorns typically recommends a mix of Exchange Traded Funds (ETFs). A sample growth portfolio might include:
- 55% in VOO (S&P 500 fund)
- 30% in IXUS (International stock fund)
- 10% in IJH (Mid-cap U.S. companies)
- 5% in IJR (Small-cap U.S. companies)
One critique is that IXUS has shown historically lower returns compared to the others, but it’s included for international exposure. Projections range from -2% to 16% annually, with an average of 6.5%, which is a solid long-term expectation.
Step 7: Enable Round-Ups
A signature Acorns feature is Round-Ups:
- Example: You buy coffee for $5.29 → Acorns rounds up to $6.00 → Invests $0.71
- You can choose automatic round-ups (recommended) or manual
You’ll also choose which cards or accounts the round-ups apply to, including credit cards if desired.
Step 8: Set a Recurring Investment
You can invest a fixed amount weekly, starting from $5 up to $100 or more. This automated approach helps you stay consistent and grow your account passively.
Don’t worry — you can change the amount later if your financial situation changes.
Step 9: Download the Mobile App
To monitor your investments and receive updates, download the Acorns app on your smartphone. It’s the best way to stay connected with your financial goals on the go.
How to Use Acorns to Earn Cash Back
One feature many users overlook is Earn:
- Click “Earn” from the sidebar
- Scroll to find retailers offering investment rewards
- For example:
- Expedia offers 0.5% back
- Nike offers 3%
- PetSmart offers 6%
- Udemy offers up to 10.1%
These are not discounts — they are cashback-style investments into your Acorns account. It’s a great way to passively build your portfolio while shopping.
How to Use Acorns to Manage Your Portfolio
Once your account is funded and running, you can make some adjustments:
- Go to the Invest tab
- Click Portfolio
- Then click Edit > Risk
Without the Gold subscription, your flexibility is limited. You can only adjust the risk level (conservative to aggressive). If you want to add or remove specific ETFs, you’ll need the Gold tier.
For example, to eliminate exposure to underperforming ETFs like IXUS, you would need to upgrade your plan.
Is Acorns Worth the Subscription?
Acorns started with a $1/month flat fee but now uses a tiered system. While the $3 plan is still affordable for beginners, many experienced investors may outgrow the platform quickly.
Pros:
- Beginner-friendly
- Fully automated
- Round-ups encourage consistent investing
- Free bonus investments from shopping
- Retirement and family investment options
Cons:
- Subscription cost adds up over time
- Limited portfolio customization unless you upgrade
- Other brokers offer similar services for free
Final Thoughts on How to Use Acorns
Knowing how to use Acorns effectively can help you build healthy financial habits, especially if you’re new to investing. By starting small and investing spare change, you’re creating a long-term mindset that prioritizes growth and consistency.
From setting up your account and understanding portfolios to activating round-ups and cashback rewards, this guide has shown you how to use Acorns to its full potential. If you’re just starting out, the app is a fantastic tool to dip your toes into investing. However, once you gain confidence and knowledge, you may want to explore more flexible, fee-free platforms.
Whether you’re saving for retirement, your children’s future, or simply trying to be more financially mindful, now you know exactly how to use Acorns to make your money work for you.
