Making sense of the stock market with your smartphone
Moneybox is an app designed to help young savers get to grips with how the stock market works. The app rounds up your card payments to the nearest pound, to then invest the difference in some of world’s biggest companies - like Disney, Facebook, and Apple.
Moneybox is available to download for Android and iOS devices.
What does it do?
Say for example you spend £1.40 on a pastry for breakfast on your way into work. The app will take 60p to round up to £2.00, and save it up for you. And once a week, your savings are collected through direct debit, and invested just a couple of days later.
Once you’ve signed up, you can choose from three different investment methods, depending on how much you’d like to spend, and how you’d like to save. Here’s a brief overview:
You can also use Moneybox as a normal savings option – no stocks or shares involved. In this case, it’ll simply round up all your card payments, and keep the cash in an account for you to withdraw whenever you like. Very much the modern day piggy bank
You don’t have to round up every single purchase. On the app, you’re given a list of all the things you’ve bought, and you then decide which ones you’d like to roundup. So, you can swipe right to roundup, or left to ignore it. This gives you more control over how much you’re putting in the pot.
The guys at Moneybox estimate that the average user saves up to £8.40 per week, which is about £440 over a year. And through smart investments, which they take care of, you could see a growth on your savings.
Is it secure?
This is all well and good, but what about safety – and more importantly legitimacy? Well, Moneybox’s website says the company is “authorised and regulated by the Financial Conduct Authority (FCA). Their goal is to ensure that we always run our business in the best interest of our customers.” You’re also covered by the government’s Financial Services Compensation Scheme (FSCS).
They’ve also got a series of videos explaining the ins and outs of the app, and how your money is dealt with. Here’s one of them to give you a taster:
Moneybox is by no means a get rich-quick-scheme. It is, however, a way of making small savings, which can add up over the months, and a solid introduction into the world of stocks and ISAs.
We’d love to hear your thoughts about micro-investments through your smartphone. Is it a good starting point for young savers? And will you be downloading Moneybox? Leave us a comment below.