Acorns Grow Inc. has expanded its financial advice programming to children, aiming to help them develop smart financial habits early.
The Irvine-based fintech startup launched Acorns Premium, a subscription service that allows families to jointly manage their childrens’ account for $9 a month.
“We know that people who receive financial advice and support earlier in life are likely to have better financial outcomes,” Acorns Chief Executive Noah Kerner said in a statement.
“Our pioneering premium tier is where we provide financial wellness for the whole family to unlock compound growth at every life stage. That’s the key to building wealth.”
The subscription includes access to GoHenry, which was acquired by Acorns earlier this year.
With GoHenry, parents can set up automated allowances, make instant transfers and set spending limits all from their phones.
Financial Education
The launch of Acorns Premium comes at the same time as financial planning month.
Over half of adults in the U.S. don’t have savings accounts set up for their children, according to a recent survey conducted by Acorns with CNBC, which is an investor in the fintech.
“Now felt like the perfect time to launch our enhanced premium tier,” Seth Wunder, chief financial officer and chief information officer for Acorns, told the Business Journal.
Education is a core pillar of the brand, according to Wunder, which is why Acorns Premium also offers live Q&A sessions with financial experts for adults and Money Missions, in-app gamified lessons that build financial literacy.
Wunder was introduced to investing early on as a child, leading him to join the stock-picking club in school.
When he began his career in the finance industry more than 20 years ago, he noticed that not everyone had access to the same resources.
“That’s when it became my goal to even the playing field by making investing and financial education accessible to all—regardless of your life stage, age or background,” Wunder said.
GoHenry Acquisition
Acorns acquired GoHenry and its sister company Pixpay in April. Terms of the deal were undisclosed.
The acquisition of GoHenry, founded in 2012 in the U.K., broadened the company’s audience globally to kids and teens.
GoHenry’s debit card and app teaches children between the ages of 6 and 18 how to manage their money.
Acorns says it has helped over 4.5 million customers save and invest over $16 billion to date, while children using GoHenry saved $130 million in the last five years. Together, they have nearly 6 million subscribers in five countries.
Acorns has been helping parents invest in their children’s future before the launch of Acorns Premium.
In 2022, Acorns launched Acorns Early, an investment account for kids.
By opening an Early account, parents can start saving for their children as early as when they’re born.
Acorns’ last funding round raised $300 million from private investors last year.
