How does Acorns the financial App predict your spend thrift behaviour even before you open your wallet

Acorns App

Acrons is the financial app that you all know is quite popular but lately a new technology has featured in this app which can  predict your spend thrift behaviour even before you open you wallet.

This artifical intelligence will predict what you spend before it even leaves your wallet and will advise how much cash you’ll have at the end of the month in new Australian-made technology  known as ‘robo-budget’ technology featuring in the financial app Acorns.

It will also identify whether you’re splashing too much cash on entertainment, eating out, and shopping, and is designed for a millennial audience who often skimp on meals and cut back at the end of each pay cycle.

According to Acorns chief executive George Lucas the artificially intelligent budgeting feature was created to help users manage their personal finances with as little effort as possible, and was the first of its kind.It can start giving tips to customers about ways they can adjust their spending automatically and make them aware of how they are spending money.

The new My Finances feature scans and categorises all transactions in users’ bank and credit card accounts, breaking down spending into fields such as entertainment, transport, and accommodation, and using them to create monthly spending reports.

Acorns revealed the new feature alongside a new study of 1000 Australian showing three out of four millennials cut back on spending while waiting for their next pay cycle, and more than half skimped on meals to eke out savings.

The new feature also comes just over a year after the Acorns app launched in Australia, and seven months after it accused the Commonwealth Bank of blocking its customers from accessing its services. Despite the hurdle, the app has been downloaded more than 200,000 times.

Acorns App

So it’s certainly a useful tool to save more and for investors who  pay $1 a month until their account balance hits $5,000, then 0.25% of their account balance per year.

Investing with Acorn

There’s no minimum to open an account, but the service requires a $5 balance to start investing in one of Acorn’s five pre-built portfolios. The only thing better than building an investment portfolio out of a bunch of spare change is building an investment portfolio out of someone else’s money. Acorns’ Found Money program essentially lets you do that: It’s cash back for your investment account.

Acorns has partnered with a short but relatively mighty list of companies — including Jet, Blue Apron, Airbnb, Boxed and Hulu — to give you up to 10% cash back when you use a linked payment method at one of the partners. In most cases, you get the cash back automatically, without an additional step. You simply use a card linked to an active Acorns account to make the purchase, and the Found Money rewards will land in your account in 30 to 60 days.

Acorns app

Like other robo-advisors, Acorns takes the investing reins from the user. The app considers your data — including age, goals, income and time horizon — and then recommends one of five portfolios that range from conservative to aggressive. You can accept that recommendation or choose a different portfolio that takes more or less risk.

The portfolios themselves, though, are smaller than the average robo-advisor-built portfolio, made up of low-cost iShares and Vanguard exchange-traded funds that cover just six asset classes: real estate, large-cap stocks, small-cap stocks, emerging markets and corporate and government bonds.

How to get started

Download Acorns from the App Store and create an account. It does ask for some pretty personal details though to help work out the best investment portfolio for you, so if you really value your digital privacy, this might not be for you.

Once you’ve created your account, link your bank accounts and credit cards. The ease of setting this up depends on what bank you’re with.

All the big banks are here, plus most other institutions under the more banks section. Once you’re all set up and connected, you begin to customise. You can select how much you want to round up when it lands on an even dollar and your most important part is selecting what portfolio you want.

Your money can be invested in five fund types, ranging from conservative, which puts most into cash and bonds, through to aggressive which has over 80% allocated to equities.

You will find  mostly large Australia stocks, but there’s a few Asian ones in there too. The roundups work really well, so essentially, if you spend $3.50 on a coffee the app will then automatically round up 50c into your investment account. Once you’ve rounded up $5 worth of change it then deposits it into your account. You can also accelerate this if you want and deposit more money as you please.

Thus this Aussie app uses artificial intelligence to predict personal budget blowouts before you spend. You can download the app from Google Play for Android and from app store iTunes for iOS smartphones and tablets. To know more about Acorns just visit their website online.