In an era where day trading and crypto are more accessible than ever, the stock market can feel like an unpredictable place. When markets are volatile, having cash on hand feels safe. Market dips don't touch your cash balance, and your money is there when you need it. For many, cash equals security.
But financial wellness isn't just about protecting what you have today, but also about making sure you can build for tomorrow. By keeping everything in cash, you avoid market swings, but don't prepare you for inflation over time. Keeping your money stashed away isn't free, and could actually cost you.
Why $100 today may not be $100 in 5 years
Inflation is the rise in the price of goods and services. When prices go up, the value of your stashed cash goes down.
As of November 2025, inflation rose to 3.8%. If you keep $100 stashed for 5 years at the same 3.8% inflation, you still have $100 on paper, but it may only buy $83 worth of goods. That's roughly a 17% loss in purchasing power, without ever touching a single investment.
How you can stash cash but also invest for your future
If investing feels intimidating, you don't have to start big. At Acorns, our mission is to look after your financial best interests, and that includes helping you outpace the rising cost of living without added stress.
Build your Emergency Savings fund
You're already ahead by keeping cash on hand. But your money can work harder in a dedicated Emergency Savings account. If something comes up, you can still access your funds quickly. And when nothing comes up, your money is still there, ready when needed, while also earning a high APY.
Invest in small, consistent amounts
You don’t have to start big or know everything about the stock market to start investing. By tapping into our automated tools, like Round-Ups® or Recurring Investments, you can invest spare change without worrying or thinking too much about it.
Consider conservative options
If you're more comfortable with stability over growth, you don't have to take on more risk than you're ready for. Acorns offers expert-built, diversified portfolios ranging from Conservative to Aggressive. While we suggest one based on your income, goals, and timeframe, the choice is always yours.
Our Conservative portfolio is composed mainly of ETFs that hold government and corporate bonds. While all investing involves some risk, this option is designed to prioritize stability while still giving your money a chance to grow.
Saving keeps you protected today. Investing helps make sure your money is still working for you tomorrow.
Frequently Asked Questions
Why is keeping cash considered a risk?
The primary risk is inflation. As the cost of living increases, the purchasing power of a fixed amount of cash decreases. Over long periods, this can significantly reduce your potential and ability to buy what you need later.
What is the lowest amount I can invest on Acorns?
You can start investing with as little as $5. Features like Round-Ups® also allow you to invest your spare change automatically, making it easy to start small.
Can I choose a portfolio that isn't risky?
Yes. Acorns offers several portfolio tiers. You can opt for a Conservative portfolio, which prioritizes more stability by investing in ETFs which hold bonds rather than individual stocks.
This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Article contributors are not affiliated with Acorns Advisers, LLC. and do not provide investment advice to Acorns’ clients. Acorns is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.
For informational purposes only. Strategies and investments discussed may not be suitable for all investors. Contents of this article have been generalized and should not be considered investment advice, a recommendation, or be construed as an offer or solicitation to buy or sell an interest in any specific security. Information contained herein has been obtained from sources believed to be reliable; however, the accuracy cannot be guaranteed and is subject to change without notice. Investing involves risk, including the loss of principal. Please consider your objectives, risk tolerance, and all fees before making any investment decisions.
Savings accounts are insured by the FDIC and offer a fixed rate of return. Investing involves risk and both the principal and yield will fluctuate with changes in market conditions so that the value of your investment may be worth more or less than your original cost when shares are redeemed.
Investment advisory products and services offered by Acorns Advisers, LLC ("Acorns"), an SEC Registered Investment Adviser. Brokerage products and services are provided by Acorns Securities, LLC, an SEC registered broker-dealer, Member FINRA/SIPC.
Automatic investing does not ensure a profit or protect against losses. It involves continuous investing regardless of fluctuating price levels.
Acorns Invest is an individual investment account which invests in a portfolio of ETFs (Exchange-Traded Funds) recommended to customers based on their responses to the Acorns investor profile questionnaire.
The ETFs comprising the Acorns portfolios charge fees and expenses that will reduce a customer’s return. Investors should read each fund's prospectus and consider the investment objectives, risks, charges and expenses of the funds carefully before investing. Investment policies, management fees and other information can be found in the individual ETF’s prospectus.
Spare change invested with Round-Ups® is transferred from your linked funding source (checking account) to your Acorns Invest account when activated. Round-Up investments from an external account will be processed when your Pending Round-Ups reach or exceed $5.
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