By Jack Armstrong ’15

Investing is now fun. That’s because it now requires little effort and doesn’t look anything like traditional investing. And it’s all thanks to a new app called Acorns that automatically monitors linked accounts, rounding up purchases, and investing the change into securely managed Exchange-Traded Funds. In addition to apps like Acorns, once you turn 18 you can start a retirement (IRA) account as well as apply for a credit card; the first steps to becoming financially independent.

There are many reasons to start investing early. First, let your money make money. The earlier you start saving, the more compound earnings and dividends can be reinvested, growing exponentially in the years ahead. Second, the ability to set up automatic monthly, weekly or daily transfers with Acorns makes setting aside money effortless. You can also link a debit or credit card to the account and it can monitor purchases and round up each purchase to the dollar, automatically investing it into your account.

Acorns accounts are no longer invite only; users sign up within the app. Portfolios are managed by a team of experienced economists. Fees are low, only $1 a month, and accounts are securely encrypted. The process to create an Acorns account is incredibly easy. After entering your name, address, social security number, a bank account and some personal financial information, your investment account is opened and a portfolio is recommended to best suit your needs. While Acorns is no get-rich-quick solution, it offers a solid starting point by making the process of investing quick and simple by replacing the per-trade commission on traditional brokerage accounts.

There are many other ways to become financially independent when you turn 18, including opening a personal brokerage account, an IRA or applying for your first credit card. Learning how to wisely manage, spend and invest your money really isn’t as hard as it seems, but make sure to make smart decisions because they will impact your financial history for years to come.

Credit cards can be valuable tools to demonstrate responsible spending, but they can also be especially risky for young adults. Depending on your spending habits, debt and interest can accumulate rapidly. However, there are many benefits to having your own credit card, assuming you consistently pay your bill in full and on time. With a high credit score you may qualify for low-interest rates on loans and big-ticket items down the road, which can save you a lot of money.

It is recommended to seek advice from a parent or experienced adult when dealing with opening financial accounts under your name. Investment accounts, with the exception of IRAs, are subject to taxes at the end of the year.

Acorns, IRAs and credit cards aside, the significance of investing and wisely spending early can have a profound impact in the future. Finding easy ways to start small can make all the difference.