How to Invest Change

Ever come home after shopping and pull out a pocket full of change? What do you do with that change? Maybe you put it in a drawer for years to come. Maybe you just put it back in your pocket to use later. Most of us don’t have a plan for this change and change can add up! 

I’d like to change how you look at change. I want to show you just how much change can add up over time and then give you some practical ideas to consider. By the end of this, you will know how to invest change and how much it can really add up.

How much can change add up?

how to invest changeHave you ever considered how much change could add up if you just saved it? It adds up to quite a bit. The most common way to doing this, of course, is to use some sort of piggy bank.

You put your change into until it’s full and then you have quite a bit at the end of the year.

One year I did this and had $108 at the end of the year that I used for all of my food expenses when my wife and I drove from California to Virginia which is across the entire United States! Not bad right?

What if you saved that money more than a year though? It would add up pretty quick. If you saved $108 the first year and another $108 for 4 more years, that’d be $540. That’s with no interest! 

How does interest “change” this? (pun…heehee)

Interest makes a big impact and that impact gets bigger each and ever year that follows. That’s because interest is applied each year to the previous balance so the first year in our example, $108, let’s say there was 5% interest, it’d be worth $113.4. ($5.40 from interest)

Now the next year, you make another $108. So $113.4 + $108 = $221.4, then add in the 5% interest. That’s $232.47 ($11.07 in interest which is more than double the interest last year because it’s compounded.)

You can see how this adds up. In fact, I took the liberty of plugging into a convenient chart for all of you visual learners out there!

compound interest
Hopefully, this helps you visualize compound interest a little easier. I pulled this data from in case you want to plug with your own numbers. In case you were curious, doing this out to ten years would end up being $1394.93. Wow! Well, obviously you can’t make this interest if it’s sitting in your couch cushions. It needs to be in some sort of savings account or investing account. This can be a regular bank account, a stock account, or any other type of investment account.

We Do Have a Recommendation!

Have you heard of Acorns? Acorns is an app-based account that invests your spare change when you make purchases with your debit card. Hear me out. You go to the supermarket and spend $32.54. Your change would be $.46. What Acorns does is takes that change and invests it into an account for you. You can use this to save up for a purchase you want, like a vacation fund, or even a long term investment.

Feel free to check it below if you are interested. Also in addition to saving your spare change, you can make weekly or one-time contributions to your account if you want to make it grow faster.

What I do is I have it set up to round up every purchase I make and put the change in my account. Then I also have it set up to save $5 each week. That’s it and I usually save about $90/month without even thinking about it.

When you want it just cash out and the money goes straight back into your bank account. This full Acorns Review will provide you with everything you need to know about Acorns. Feel free to read through it. It if you prefer to just see the Acorns website,  the link is provided below.

Start Investing With Acorns Today!

Leave a Comment