Acorns Acquires EarlyBird: A New Chapter in Family Investing

Savings and investing startup Acorns has taken a significant step in expanding its family-focused financial services by acquiring EarlyBird, an investment gifting platform designed for families. This move, announced exclusively to TechCrunch, reaffirms Acorns’ commitment to enhancing financial wellness for families across America. However, this acquisition also means the closure of EarlyBird, and customers must navigate some changes as a result.

What This Acquisition Means for EarlyBird Customers

As part of the acquisition, EarlyBird will officially shut down on June 23, and all customer accounts will close by that date. Customers will have their funds returned to the bank accounts linked to their EarlyBird accounts. This transition points to a broader strategy by Acorns, which aims to bring enhanced financial tools directly to families.

Founded in 2019, EarlyBird was praised for its innovative approach to investing, allowing families and friends to gift investments to children while preserving memories through digital time capsules. Once a child turned 18, these investments would become theirs to keep, offering them opportunities to fund education, make home down payments, or kickstart their own businesses. “When we founded EarlyBird, we envisioned creating a platform that would transform how families leave lasting legacies for their children,” said EarlyBird CEO and co-founder Jordan Wexler. By joining Acorns, Wexler believes they can expand this vision and positively impact millions of families.

Enhancing Acorns Early with New Talent

Wexler and EarlyBird co-founder Caleb Frankel will join the Acorns team to help further develop Acorns Early, the company’s smart money app tailored for kids and teens. Acorns Early offers a debit card designed to teach children financial literacy and solid money management skills. Following its acquisition of GoHenry, a platform dedicated to educating children on finances, Acorns aims to bolster its offerings for young users.

Acorns CEO Noah Kerner expressed enthusiasm about the acquisition, stating, “Our vision is to build a financial wellness system for the whole family, creating compound growth at every life stage.” By integrating EarlyBird’s insights and innovation, Acorns hopes to deliver even greater value to families focused on cultivating financial habits from an early age.

Transitioning to Acorns Gold

Existing EarlyBird customers have a reason to remain optimistic as they will receive a complimentary one-year subscription to “Acorns Gold.” This premium plan includes access to all of Acorns’ products, including Acorns Early, effectively facilitating the transition for EarlyBird users. While customers cannot transfer their EarlyBird funds directly to Acorns Early, they will need to withdraw their funds and open a new account. An email will be sent to guide them through the sign-up process.

In the future, Acorns plans to integrate the digital time capsule feature from EarlyBird into the Acorns Early app. This innovative feature allowed users to document memorable moments in their lives by recording videos, creating a more personalized investment experience.

Growing Demand for Family Financial Solutions

The acquisition arrives at a time when Acorns has seen impressive growth. The company has doubled its customer base on the Acorns Gold plan, which offers a variety of resources for families, over the last year. “Our Gold Plan will be the place to deliver financial wellness for the whole family — products for parents, kids, and all the connective fabric between the family unit,” Kerner explained. This insight showcases Acorns’ commitment to catering to family needs and developing smarter financial habits.

Overall, Acorns’ recent acquisition of EarlyBird marks a decisive move towards building an integrated financial ecosystem for families. By leveraging EarlyBird’s unique vision and capabilities, Acorns is well-positioned to broaden its impact on financial wellness among children and their parents alike.

As Acorns continues to shape the future of family investing, existing EarlyBird users can look forward to a robust set of tools designed to support their financial goals as they embark on this new journey with Acorns. This strategic acquisition signals larger trends within the fintech landscape, where companies are increasingly focused on building tailored solutions for family investment and financial literacy.