![]() ![]() We want everyone to invest more for their own sake, but our business model is not attached to the amount of money they have in their accounts. In fact, we use a subscription model so it doesn’t matter how much someone has invested. This is not a lot compared to other financial services companies, but our goal isn’t to compete with them on that basis. We have more than $1 billion in assets under management. ![]() Knowledge at Wharton: How big is the oak tree now?īarrett: We have more than 4.5 million customers and went from a few employees to more than 260 employees in four years, so we’ve grown quite a bit. We’re planting an acorn, and over time it will become an oak tree.” He was walking in the woods when he looked down and saw acorns on the ground. Jeff worked with his dad and they came up with a prototype, and that was how Acorns was born. And then, once they’re in, we slowly nudge them to save and invest more. The idea behind it was that you’re already spending if we can attach the process of investing to something that you’re already doing, and we can lower the risk thresholds, we can get a lot more people investing. Jeff came up with the idea of rounding up spending on purchases and investing the change. He wondered why we make it so hard for Americans to invest when it’s so important to their well-being, and started thinking about how we could make it easy for people to invest. When Jeff was in college, he realized that he was unique - not only did he invest, he was actually interested and not intimidated by it. Since his dad was in the financial industry, he had grown up being comfortable around investing. It was the son - Jeff Cruttenden’s - idea. Jennifer Barrett: A father-and-son team started Acorns. Knowledge at Wharton: What was the origin of Acorns? What inspired the company’s creation? In a conversation with Knowledge at Wharton at the recent Fearless in Fintech conference in New York, Barrett discussed Acorns’ journey until now and explained its vision for the future.īelow is an edited version of the interview. Jennifer Barrett, its chief education officer, believes this rapid growth has come about because “ the concept is simple and yet compelling.” Since the company was founded in 2014, Acorns has signed up more than 4.5 million customers. And from these financial “acorns,” giant oak trees potentially could grow. Because most people are more focused on spending than saving, tying these two activities together leads to small but frequent savings and investments. For example, if someone buys a cup of coffee for $1.35, Acorns will round it up to $2 and invest 65 cents in an investment portfolio. Through the Acorns mobile app, the company links to its clients’ bank accounts to save and invest the spare change automatically. Its founders believe investing can be made simple, easy and accessible to people of all incomes.Īcorns encourages users to invest their spare change by rounding up a purchase to the next dollar and investing the difference. Acorns, a California-based firm that describes itself as a “financial wellness system,” disagrees. People often believe that investing is difficult, time-consuming, complicated and requires large sums of money. It’s Not You - It’s Your Goals: Knowing When to Quit May 30, 2023.Generating Ideas: A Process for Breakthrough Innovation June 14, 2023.The Meeting Style That Generates Breakthrough Solutions August 7, 2023.Strengthen Your Leadership with the Science of Awe August 21, 2023.Meet the Authors: Wharton’s Katy Milkman on How to Change May 14, 2021.Meet the Authors: Mauro Guillén on How Businesses Succeed in a Global Marketplace June 21, 2021.Meet the Authors: Wharton’s Peter Cappelli on The Future of the Office November 4, 2021.Meet the Authors: Erika James and Lynn Perry Wooten on The Prepared Leader October 3, 2022.How National Politics Are Impacting DEI in the Workplace February 7, 2023. ![]() Diversity at Work: Why Inclusive Storytelling Matters April 4, 2023.Improving Accessibility in the Workplace - and in Space May 16, 2023.How Employers Can Support Women’s Reproductive Rights June 20, 2023.Great Question: Kevin Werbach on Cryptocurrency and Fintech July 21, 2021.Great Question: Dean Erika James on Crisis Management August 16, 2021.Great Question: Wendy De La Rosa on Personal Finance October 15, 2021.Great Question: Witold Henisz on ESG Initiatives November 17, 2021. ![]()
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