Piggy banks may be a thing of the past, but this old-school method of saving pennies is making a comeback in Australia – with a technological twist. ‘Round ups’ is the modern name given to this traditional saving strategy, and it’s recently been sneaking its way into a swathe of new financial apps. The idea being that you connect the app with your bank card and whenever you make a purchase, it rounds it up to the nearest dollar and invests the remaining cents into a ‘virtual piggy bank’.
This may seem like the type of overly simple savings strategy that couldn’t possibly work in the long run, but this time-tested method is taking Australia by storm. Here we look at how technology has helped this basic saving method develop into an entirely new ecosystem.
New and Improved
The main reason saving cents is back in fashion is because of the technology behind it. A pile of coins gathering dust in a jar doesn’t quite have the same cool and edgy appeal as a flashy app – nor does it have the added functionality.
Beyond just basic savings, the most innovative round up apps in Australia feature a host of ways to invest and grow your money, including cryptocurrencies, gold, and stocks. You can also set up recurring monthly investments that automatically invest a set sum of money on the day you get paid, and you can choose what percentage of your savings goes where.
These revolutionary apps include simplified yet highly accurate financial charts showing the real-time price action of assets over various time periods. You can look back on past performance, make informed investment decisions, and decide how to split your investments amongst a basket of assets.
Bonus Features
Besides the attractive, hands-off method of passive investing via round ups, these neo-banking apps feature a host of bonus features.
Budgeting
Modern ‘Open Banking’ protocols now make it possible to connect third-party mobile apps and share your financial data securely. By linking your bank account, your app can do a detailed analysis of
Many savings apps include powerful budgeting features that show you detailed graphs of your expenditure over time, automatically sorted into categories like travel, groceries, and entertainment. This is often an eye-opening experience for some users who didn’t realise where they were overspending, helping you to cut down where it counts.
Micro-Investing
Micro investing is just as the name suggests – making tiny investments in stocks, bonds or any other type of asset. In the past, investing in assets was the reserve of the ultra-wealthy, but now anybody with a smartphone can get involved. From as little as $1, you can invest in Bitcoin, Ethereum, Gold, Silver, or (in some cases) index funds and company stocks. This is a great way to learn about the world of finance and get a foot on the investment ladder at a young age.
Self-Managed Super Funds (SMSF)
For Australians who want to redirect their superannuation fund to a more profitable investment vehicle, many new investment apps offer the ability to open a self-managed super fund (SMSF). This allows you to invest your super in whatever way you like, giving you the power to choose the best future for yourself and your family. This is a somewhat more complex feature that requires a bit of extra work, but it’s great to know it’s easily available if needed.
Get Onboard!
If you’re yet to try out one of these incredible new investment apps, it’s time to get onboard. Young people all over Australia are becoming investment wizz-kids before our eyes, so don’t miss the train. There are a ton of apps available and they all offer different features, so do some research and find the best one for you.