Micro-investing app Acorns launches ‘Little Acorns’ feature
Acorns users can use the new feature to start saving and investing for their children.
Popular micro-investing app Acorns has announced the launch of its Little Acorns feature, allowing users to start saving and investing for children under the age of 18. The new feature is a solution for Acorns users who want to start a savings fund for their child or grandchild, but don't want to create a separate account to do this.
Acorns has become increasingly popular since launching in 2016, particularly among Australian millennials who have embraced the app's iconic round-up feature. The app allows you to round up your everyday purchases with the spare change invested on your behalf.
Little Acorns is a new feature that sits within your existing Acorns account, rather than a separate account for your child. You can simply select the proportion of your account balance that you'd like to allocate to Little Acorns, and the app will take care of the rest.
For example, if your Acorns balance is $10,000 and you'd like to allocate 20% of your balance to Little Acorns, then $2000 would be sent to your Little Acorns. This also works with any money you deposit into your Acorns account or any recurring payments – 20% would be allocated towards Little Acorns.
You can also choose to split your Little Acorns balance up even further if you had several children you'd like to save for. For example, if you had four children, the new feature will split the proportion of the balance allocated towards Little Acorns evenly four ways. In the case of the example above, this would mean $500 is allocated to each child's Little Acorns goal.
The launch of this new feature comes just one week after Acorns won the Best Personal Finance App at the finder 2017 Innovation Awards in Sydney. To celebrate the launch of the new feature, Acorns are giving five lucky users the chance to win a $100 bonus into their account. To enter, check out the Acorns Facebook page for the details.