As parents, we are always looking for ways to give our kids a head start. One of the best ways we can do this financially is to build strong financial literacy skills. When it comes to developing those skills, nothing beats hands-on learning. Check out our Acorns Early Review to find out how this tool can help your kids get smart with money right from the start.
What is Acorns Early?
Formerly known as GoHenry, Acorns Early is a money management tool for kids and teens that grows with your child.
Families can use Acorns Early to:
- Distribute money for allowance and chores
- Use savings accounts
- Set up budgets
- Learn about spending habits
- Access debit cards
- Start investing
Whether you have an elementary-aged kid earning an allowance for the first time or a high schooler needing a debit card to pay for gas, Acorns Early has features that fit your child’s needs. The best part is that there are comprehensive parental controls, so you can guide your child’s saving and spending habits.
Acorns Early Review: Best Features
Acorns Early is a comprehensive tool designed for families with kids of all ages. It truly grows with your child. From saving to investing, Acorns Early helps give your child real-world exposure to money. Let’s explore some of the best features of Acorns Early.
Investing Option
With an Acorns Gold subscription, you can access Acorns Early Invest. Acorns Early Invest allows you to set up a UGMA/UTMA. You are in charge of this gift/transfer account, and your child is the beneficiary. The account functions similarly to an Acorns Invest account. You can help your child purchase ETFs, and these funds can help them start their investing journey.
Another aspect of Acorns Early Invest that we love is the Early Match. Early will give you a 1% match on your investments up to $7,000. That’s up to an extra $70 per year for helping your child build their financial literacy and learn how to invest.
You want to note that this is a gift/transfer account, not a college savings fund. That means that the money in this account can be used for anything. Your child will take ownership of the account when they reach adulthood, which means they will then have total control over the funds and how to spend them.
Giftlinks and Relative Accounts
Is your house overrun with toys? Do you dread the thought of birthdays and holidays because it means more stuff? Acorns Early makes it easier to ask for the thing kids and teens really need: money!
Friends and family can send money directly to Acorns Early accounts using Giftlinks. These work similar to e-gift cards or vouchers that people are already familiar with purchasing. This makes gift giving simple and much safer than trying to put cash or a check in the mail. All of these transactions are fee-free. That means it doesn’t cost Aunt Susie anything to send money, and your kiddo won’t pay any fees either.
Additionally, for people who want to add to their kids’ accounts on a more consistent basis, they can set up “relative accounts”.
Debit Card for Kids
As our world becomes increasingly cashless, access to a debit card is really helpful, especially for teens. Acorns Early offers users the opportunity to get a Mastercard debit card. This debit card comes with features you would expect, including:
- Bank-level encryption
- FDIC insurance on money in a partner bank
- Liability protection
- PIN and chip transactions
Additionally, Acorns Early debit cards stand out for several reasons. Parents can block unsafe spending categories, and you can also receive real-time spending notifications. That way, your child can experience financial freedom without suffering financial consequences.
The icing on the debit card cake is that users can choose from over 35 customizable card designs.
Check out our full list of debit card options for kids to help see if Acorns Early is right for you.
Allowance Option
The debit card feature of Acorns Early is certainly something to celebrate. One other thing we love is the allowance feature. If you pay your child a regular allowance, you’ve no doubt had to scramble to find cash at one point or another. Acorns Early makes it simple to move money digitally while still making it noticeable for your child. The cash won’t pass directly through their fingertips, but this is probably the next best thing.
Financial Literacy Lessons
Acorns Early offers bite-sized financial literacy lessons that are appropriate for kids and teens. These aren’t just any old lessons, either. In fact, Acorns Early gamifies their financial curriculum.
So kids get nudges, hints, and points as they work through the lesson. Then, kids can collect badges to show what they know. As kids get older, the topics adjust to their confidence and age level. This engaging approach to financial literacy is perfect for families who want to make sure their kids have a strong foundation, but might not know where to start themselves.
Acorns Early Review: Things to Consider
There are some things you need to consider before opening an Acorns Early account. While there is certainly a lot to love about Acorns Early, you want to be aware of things like interest rates and cost before signing up.
No Interest on Savings
You know we love high-yield savings accounts! Unfortunately, your child’s money won’t earn interest through Acorns Early. If your child has a significant amount saved, it might make sense to transfer some of that money to a high-yield savings account or start to invest.
Additionally, Acorns Early gives you the option to set up parent-paid interest, which is money that comes from your account to mimic earning interest. While we certainly appreciate the learning experience, we also really love earning actual interest on our savings.
As a result, customers who are looking for a one-stop shop might find this a little messy. You might want to explore other banking options for families instead.
Higher Cost
Acorns Early also costs more than some competitors. In this instance, though, we think that Acorns Early features robust offerings that make the price worthwhile. You pay $5 per month for one child or $10 per month for 2-4 kids.
If you plan to use Acorns Early as an investing platform, you need the Acorns Gold subscription. This costs an additional $12/month. You can use it to help your kids invest, and you can also use it for your own investments.
UTMA Investing
Another consideration to make before signing up for Acorns Early is the fact that investing is done through a UTMA/UGMA account. We actually think these accounts can be really beneficial. However, they can have implications for college financial aid and other future financial planning. That doesn’t mean that it’s not worthwhile to have an account. It’s just a consideration you want to make so you can plan accordingly.
Acorns Early Competitors
Acorns Early is a great tool. However, there are several Acorns Early competitors that you might also want to consider.
Crew
Crew is fairly new to the scene, and they’re making a big impact already. They are a fintech tool, not a bank. But they partner with a bank to offer services like interest-bearing checking and savings accounts. Budgeting tools and joint accounts for parents and kids makes managing money and improving financial literacy a true family affair.
Though the app is designed for both adults and kids, Crew offers dedicated kids accounts with debit cards. These accounts also have direct deposit support.
Crew does not come with any monthly or annual subscription fees. To learn more, check out our full Crew review.
Ally
Ally is a popular online bank and investing platform. Its original claim to fame was as a high-yield savings account with one of the best interest rates around. Over time, though, Ally expanded all of its offerings.
Ally now offers savings and checking accounts. Plus, you can also open an investment account and even get a credit card. They truly are a full-service bank, which may appeal to families who want to keep all of their accounts in one place.
Ally does not currently offer a designated kids account or financial literacy lessons and games. The tradeoff, though, is that there is no annual or monthly fee to use Ally.
Follow these steps to open an Ally bank account for your kids. To learn more about the pros and cons of Ally Bank, here’s our full Ally Bank review.
Greenlight
Greenlight is a debit card and financial platform for kids and their families. You can help your child learn about spending, saving, budgeting, and investing.
With Greenlight, your child can get a Mastercard debit card that comes with their Zero Liability Protection. Additionally, there are chore-management charts and real-time notifications.
Currently, Greenlight starts at $5.99 per month. This covers up to five kids, including debit cards. To get customized debit cards, there is an additional one-time fee of $9.99. Again, here’s a full Greenlight review so you can learn more for yourself.
Acorns Early FAQ
As you are considering Acorns Early as a solution for your family, you may have some additional questions. We’ve gathered a few frequently asked questions to support you on your generational wealth journey.
How much does Acorns Early cost?
Acorns Early costs $5/month for one child or $10/month for up to four kids. This plan gives you access to the kids’ debit card, parental controls, chores and allowance tools, and educational content. If you also want to invest for your child, you’ll need to upgrade to the Acorns Gold plan for $12/month, which includes investment accounts for kids, custom portfolios, and more tools for your own financial goals.
I believe they should work to make sure that their pricing is more transparent on the homepage. Families appreciate that.
Is Acorns Early Safe to Use?
According to Acorns’ security overview, Acorns Early is built with strong security features to protect your personal and financial data. It uses 256-bit encryption, multi-factor authentication, automatic logouts, and undergoes regular third-party security audits. Investment accounts are SIPC-insured up to $500,000, and Acorns Checking is FDIC-insured up to $250,000.
That said, digital security is a two-way street. While Acorns works hard to safeguard your account, users should also take steps—like using strong passwords, enabling two-factor authentication, and avoiding public Wi-Fi—to protect themselves.
Final Thoughts on our Acorns Early Review
Acorns Early could be a powerful tool for families who want to instill financial literacy in their kids. The product is unique and the gamified financial literacy lessons are sure to capture the attention and interest of young savers. Plus, the fact that kids and teens can easily transition from saving to investing definitely puts Acorns Early ahead of some other tools.
Still, it’s worth remembering that Acorns Early can be a bit complicated. It also costs more than its competition. Overall, we’d give Acorns Early 3.5 stars as a financial tool for families.
To try them out for one month for free and get a $20 allowance credit, use our partner link. This is a limited-time offer.
What stands out in our Acorns Early review? Which tools are you using to build financial literacy in your family?
Please let us know in the comments below.
Disclaimers: Greenlight and Marriage Kids and Money have a Tier I affiliate relationship. Compensation and additional details can be found at https://greenlight.com/affiliates-details
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