Acorns Early is a simple way to invest in your child’s future with a UTMA/UGMA account. Parents, guardians, or family members create a custodial account for a child right within the Acorns app.
Have children you want to set up for financial success? Acorns Early may be the app for you.
Acorns Early Overview
Get Acorns Early as part of the top-tier system that includes Invest, Spend, and Later. You can set recurring investments with as little as $5 a day, week, or month. Have multiple kids? No problem. Set separate accounts for each child that may also include some potential tax benefits while you invest.
What are UTMA/UGMA accounts? These are the two types of custodial accounts opened for minors. A minor is a person under the age of 18 or 21 years depending on the laws of the state of residence. With a custodial account, transactions are completed by the custodian on behalf of the minor. Transactions include buying and selling securities.
You can read more about how taxes work on child’s investments and other income at IRS.gov.
Want to get started saving for your child? Get started now with Acorns Early.
How does Acorns Early Work
With Acorns Early, you must have an existing Acorns account and opt for the Family tier. Early accounts are separate from your personal investment accounts. It helps you invest, not just save for your child’s future.
You can easily set up recurring investments of just $5 a day (and with an 8% return your child could be a millionaire by age 50.
Unlike 529 Plans, UTMA/UGMA accounts can be used for anything that benefits a child. And since these accounts are for children, Acorns uses an aggressive portfolio to maximize returns.
Features & Benefits
- Get started with $5.
- Automate recurring investments at just $5 per day, week, or month.
- Family-friendly investment bonuses.
What is Acorns?
Acorns is a financial services company offering a suite of products to help people invest their spare change or take small steps towards their financial goals. They revolutionized the investing industry with their Round-Up feature that merged convenience, automation, and robo-advisor models to help more people save and invest. You can learn more about Acorns here.
- Family: $5 per month. Access investment, checking and debit card, retirement account, and investment accounts for kids.
Acorns Early Review
Acorns Early is a great option for parents or family members who are already using Acorns. The integration is seamless and it only takes 5 minutes to open an account for a child. Starting a UTMA/UGMA accounts can be beneficial over a 529 plan since the funds can be used for any purpose other than education. However, if you’re looking for 529 college savings plans, then Early is not for you. Instead, check CollegeBacker.
Is it worth the $5 fee per month? That all depends if you’re a current user of Acorns and taking advantage of the suite of products. If you’re on the Personal level ($3/mo), then you’re simply adding $2 per month to access accounts for kids.
Who is it best for?
Acorns Early is best for existing Acorns users who have children. If you like the simplicity of the system for your own investments, it can make sense to use it for your kids too. Non-Acorns users who are considering a more integrated financial system centered around investing can decide to make the switch as well.
How to Start an Acorns Account
Time needed: 3 minutes.
Step-by-Step to opening an account with Acorns
- Getting started
Log in to your existing account or click here to Get Started to open a new account.
- Choose Early
For new accounts, submit your personal information, set up a PIN access code, and log into your new account. For existing users, log in and click on Early to get started.