'The American Dream is not dead': Acorns' CEO Noah Kerner

I remember watching my mother — a brilliant, savvy, hard-charging woman — become completely overwhelmed at an ATM. And her nervous reaction to money and interacting with it, in turn, instilled a deep-seated conservatism with my own money. Even small moments like these leave a lasting impression on any child, including me, when it comes to adult decisions. 

So, in my twenties, instead of investing, I hoarded my savings, diligently putting money away but not investing — that just seemed too risky. This cautious approach caused me to miss early opportunities for compounding interest and wealth building earlier in my life. And it wasn't until I sought a financial advisor's help that I could start making smarter decisions with my money. It was the push I needed then, and I was lucky to be able to afford an advisor. 

Reflecting on that now, I realize how crucial it is to help others avoid making the same mistakes, and it is one of the many reasons I have built and led Acorns. 

Even a handful of decades later, when the market is unexpectedly turbulent, that little voice from my childhood urges me to pull my money out and hide it away to keep it safe. It's those times that I have to bring out my very consistently used mantra: "Every downturn ends in an upturn." And it's this patience, consistency, and willingness to wait that have shown me the long-term benefits of sticking to a long-term investment strategy.

'The American Dream is not dead'

Today, we often hear a different mantra that can drive many to adopt the same cautious habits of stashing money away: the American Dream is slipping away. Even something as simple as a grocery receipt today can validate that thought. 

• Since February 2020, the cost of goods has risen by over 20%, leading to increased credit card debt, reduced savings, and growing concerns about meeting basic needs.

• Many young Americans are worried about the collapse of Social Security or expect little to no payouts.

• Alarmingly, one in five Americans over 50 have no retirement savings, and more than half are concerned they won't have enough to last through retirement. Traditional pensions are nearly extinct.

• According to Acorns' 2024 nationwide financial wellness survey, almost 1 in 4 people — and specifically, 1 in 3 Gen Z and millennials — fear homelessness due to their financial situation.

• But the American Dream is not dead; this is a large part of why I do what I do. Why waking up every day to help everyday Americans get over the investing hurdle like I did continues to be such a personal mission. And you don't need a significant investment to start, or even a financial advisor. 

What if your kids could have $2.5m by retirement?

My advice is to just begin, and continue by investing small amounts and spare change — tiny acorns, as we like to say. And when I say small amounts, even $3 a day invested in a diversified portfolio over a long period can make an incredible impact on your financial wellness. In fact, if parents start investing $3 per day in their newborns, their kids could have $2,500,000 by retirement age based on an average annual compound rate of 8%. 

So while present realities may cast a shadow over the path forward, we can take small steps every day toward our financial goals. We can leverage the tools that tap into the free market and put smart financial habits at our fingertips.

If 100 million Americans invested for their futures

To that end, we examined the data around our prototypical Acorns customer to understand the potential future value if 100 million Americans followed suit. What we found was astonishing. If 100 million Americans did what millions of Acorns customers do regularly, the projected aggregate amount those Americans would have saved in 40 years would be greater than the current U.S. National Debt ($35 trillion) — coming in at approximately $38 trillion.

In other words, by starting now and committing to the tools that make it easier to save and invest regularly, 100 million Americans could build towards a far brighter financial future, a renewed American Dream. 

This slow and steady approach might not seem as thrilling as crypto, real estate, or any other headline-grabbing investment scheme, but history has proven that it works.

Since the birth of the American Dream, slow, steady, determined progress toward a goal has been the path. That hasn't changed, and the sooner you get started, the better. 

So, my advice is to start small and stick with it. Your piece of the American Dream is there for you. Go get it.