Money Hack: Turn your spare change into an investment portfolio for your kids
Micro-investing app Acorns has launched a new feature allowing you to invest for your children.
Starting a savings fund or investment portfolio for your kids is a great idea and is something that can really help set them up later in their lives. But with so many different options available, it can be confusing knowing where to even start.
What if there was a way that you could start an investment portfolio for your kids without really doing anything? Well, you guessed it, there is.
The hack
I'm sure you've heard of Acorns, the popular micro-investing app that takes your spare change from everyday purchases and invests it on your behalf. The beauty of the app is that you don't need to change any of your existing spending or savings habits. It simply rounds up your transactions to the nearest dollar amount you've selected and adds that change to your portfolio.
Acorns has been increasingly popular since it launched in 2016, particularly with millennials who favour the fuss-free, easy investing strategy. Earlier this month, it announced the launch of its latest feature, Little Acorns, which allows you to divert a portion of your spare change towards an investment account for your child. The best part is that if you're already an Acorns user, Little Acorns sits as a feature within your existing account.
As an example, you could choose to allocate 10%, 20% or even 50% or more of your Acorns balance into a fund for your child. If you decide to allocate 50% to your children and you top up your balance by $500, then $250 would be allocated to Little Acorns. If you had two children, the app will split the $250 you've allocated to Little Acorns straight down the middle. It's an easy way to start saving for your children without thinking about it.
You may also be interested in
- Westpac results: Two-thirds of our savings are in high-interest accounts
- Bulging balances: Australians’ cash reserve hits $40,000 record high
- Savings accounts that earn Qantas Points: How much could you get?
- Big bank energy: Rising cost of living pushes consumers toward big four
- Savvy stockpiling: Aussies searching for higher returns
