Investing Brokerages & Advisors

Acorns Early Review [2025]: Start Your Children’s Financial Future Now

It's never too early to save for your children and Acorns Early makes it simple.

By Stephanie Colestock
and Samantha Hawrylack

Edited by Jess Ullrich

Updated Oct. 22, 2024

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4.6

Acorns

OUR VIEW

Overall, Acorns is best as a tool for people new to investing who want to build their portfolio without a ton of risk. The automatic Round-Ups feature makes saving more manageable if you’re new to the game and want to stay hands-off, and the ability to earn bonus investments by making purchases at specific retailers may fast-track your earnings.

I originally started using Acorns back in 2014, shortly after it launched, but I closed my account in 2015 because I wasn’t happy with how Round-Ups were processed. Now, I decided to try Acorns out again, and I’m pleasantly surprised by how the platform has transformed and how much more it offers.

That said, I’m not sure it will replace my existing investment account because it lacks the functionalities of a full-service brokerage, like the ability to choose individual stocks and ETFs, unless you upgrade to the $12-a-month plan. Even then, your options are limited.

Pros

Automatic Round-Ups can help you save faster

Up to 3% IRA match with Acorns Gold plan

Earn bonus investments by shopping with specific retailers

High annual percentage yields (APYs) with checking and savings accounts

Cons

No way to avoid monthly fees

Limited ETFs and stocks to choose from

$35 fee per ETF when transferring to another brokerage

Many features limited to most expensive plan

How we evaluate products

What is Acorns Early?

	Acorns Early
Minimum investment	$5
Management fees	$12 per month for an Acorns Gold Plan
Asset classes	ETFs (including ETFS for stocks, bonds, real estate, and other types of assets)
Account types available	UTMA / UGMA custodial account
	Visit Acorns

Paid Non-Client Promotion

To understand the value of Acorns Early, you first need to meet its parent company, Acorns. Acorns was founded in 2012 as a micro-investing app, aimed at helping its (now more than 10 million) users grow their "acorns" of today into the "oaks" of tomorrow.

Acorns was one of the first micro-investing apps I ever used, and I couldn't believe how easy the app made it to save for retirement. I was one of those that believed you had to be "rich" to invest, but this app quickly changed my mind.

My favorite feature is the round-ups that automatically invests my spare change from my everyday purchases. This "found" money is what taught me to finally invest on a consistent basis, and I've never looked back.

But I've since learned that Acorns not only helps investors save for retirement, you can also save for your children's future.

With Acorns Early, you are able to set up and manage Uniform Transfers to Minors Act (UTMA)/Uniform Gifts to Minors Act (UGMA) accounts for any number of children in your family and you can use the funds for more than just college, unlike the 529 savings plan.

Any expenses that benefit your child are eligible, so there's much more flexibility. So whether you're paying for your child's braces, sleepaway camp, or their first car, you can use the funds from Acorns Early.

How does Acorns Early work?

Acorns Early is a custodial account. You (the parent) or any other adult, can open the account on behalf of the child and invest and manage it for them. Children can take control of the account when they reach the age of transfer, which is 18 to 25 in most states.

If you've ever used a robo-advisor before, Acorns Early works the same way. You invest in various ETFs. The difference is the platform automatically invests the funds in an "aggressive" portfolio because kids have so much time to let the funds grow so there's more room to take chances and you can't change to a different portfolio.

When the child comes of age, they will assume control of the portfolio, how it's invested and they can spend the money however they'd like. Before that time, the custodian can withdraw funds as needed as long as they are used to benefit the child.

The app also teaches kids investing basics in its financial literacy library. This valuable resource covers a wide range of topics ranging from introductory money management to current events, investments, taxes, and more.

How to sign up for Acorns Early

It's simple to sign up for Acorns Early, and you'll only need a few pieces of information to get started.

First you must sign up for an Acorns account and subscribe to its Gold plan. Next, visit the Early page on Acorns.com and click "Add a Child" and enter the child's full name and date of birth.

You must also provide the child's SSN. If you don't have that available at the moment, you can skip this step and add it later. Just note that it must be submitted before you can start funding the account or investing on the child's behalf.

Next, it's time to set the transfer age for the account. Each state has its own rules regarding the age of transfer, which is either 18 or 21. Even if the transfer age in your state is 18, though, you can choose to remain custodian of the account all the way up to age 21. At that time, the portfolio will automatically transfer to the child's ownership.

Once Early knows how long the child will have to invest and grow their savings, it can offer projections for the future. At this time, you can see the different contribution options available (if you'd like to automate these) and how they might impact the account balance over time.

All that's left is to choose your recurring contribution day and amount, and begin investing for your child.

You are able to make one-time contributions to the account whenever you'd like, in addition to recurring investments. You can also view the portfolio's performance from your dashboard, as well as see its projected growth. Just note that you are unable to make any changes to the portfolio's risk tolerance level.

FAQs

Is Acorns Early safe and legit?

Acorns is a trusted investment platform with over 10 million users and almost a decade of portfolio management under its belt. Both the website and the Acorns app are secured with 256-bit encryption to help keep your personal financial information secure, as well.

Acorns Early is a legit way to invest. Portfolios are held as custodial brokerage accounts and are managed by a willing adult. Once the child comes of age, the account is automatically transferred into their ownership with no action required from the custodian, and the child can then use the funds as they see fit.

With that said, Early portfolios are highly aggressive and stock-based. Because of this, there is no guarantee of their growth or returns.

Is Acorns Early a good investment?

Acorns Early offers custodial brokerage accounts that aggressively invest in a mixture of 12 different ETFs, with the simplicity of automated contributions and bonus investments. With that said, investment returns are never guaranteed and there is always risk involved when you invest money.

What types of accounts does Acorns offer?

Depending on which subscription plan and pricing you choose, you can take advantage of the variety of accounts and products that Acorns offers, including:

Acorns Later, which helps you find the right retirement account for you, to include an investment portfolio and IRA
Acorns Banking, an all-digital bank account with a slew of valuable features; this is a checking account that comes with a debit card
Acorns Invest, a micro-investing account that puts your spare change to work for you, and can be set up in less than five minutes
Acorns Early, an account that allows you to save for the children in your life
Acorns Earn, helps you earn money from brands when you shop in their online stores

Bottom line

If there's one thing I've learned about investing, the earlier the better, and what better way to invest for kids than when they are young? You can invest aggressively for them, and let the funds grow exponentially over the years. Once they come of age, the money is theirs to do with as they please.

If you're already an Acorns investor, it's worth setting up an Early account for your kids or any other kids special to you. You'll set up your kids for financial security, while also taking care of your own financial needs.