Automatically invest spare change

So there's this new app called Acorns that automatically rounds up the price of everyday purchases to the nearest dollar and puts the difference in a diverse portfolio (mostly index funds). I guess it would be linked to your credit card or you'd have to make purchases from within the app... I don't know. Anyway, so obviously nobody stands to get rich from using this app but it's a cool idea nonetheless, especially for a kid who is just beginning to learn the basics of managing personal finances. Pretty cool story on the founders too.

https://www.acorns.com/

http://mashable.com/2014/03/12/acorns-app/

 
timpson:

That's a stupid idea. Why do I want all my purchases rounded up to the closest dollar?
I pay more for everything (unless it's to the dollar?) just so someone can profit off putting my money into an index fund? I could do that myself if I had any desire to.

The point it that whey you look at something for 4.80, you call it 5 in your head, why not actually spend 5.
"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 
Oreos:
timpson:

That's a stupid idea. Why do I want all my purchases rounded up to the closest dollar?
I pay more for everything (unless it's to the dollar?) just so someone can profit off putting my money into an index fund? I could do that myself if I had any desire to.

The point it that whey you look at something for 4.80, you call it 5 in your head, why not actually spend 5.

My mind doesn't work like that but if that is the general consensus, then you should make a charity app that rounds up and send to a charity of choice. IMO, that would appeal to a greater population as people already do it with physical change and charity jar/boxes.

 

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