Saving on a Budget

Technology lets even smallest investors build for the future

In these days when the stock market is soaring and 401Ks are rising along with it, it’s easy to think the economy is doing just fine.

And it is—for some Americans.

But for most the idea of a nest egg or a secure retirement is just a dream. According to the Economic Policy Institute, almost half of all Americans have no retirement savings at all. And more than 60 percent have less than $1,000 in savings of any kind.

You might think that’s just a problem for younger workers. But the median savings for workers between 50 and 55 is just $8,000. Between 56 and 61 it’s just $17,000.

The truth is, many Americans live paycheck to paycheck and cannot count on a company pension plan anymore. They are on their own when it comes to savings. That’s a problem now, and it will only get bigger as they move toward Social Security without much if any money.

Thanks to online technology, there is a way for even the smallest earners to save for the future and take advantage of gains in the market. Microinvestment companies like Acorns, Stash, Stockpile and a host of others offer savings and investment plans. User can deposit as little as $5 a month in some cases—more as they are able—and buy fractions of shares in public companies, mutual funds and exchange-traded funds. Some offer a round-up feature, which rounds debit card purchases up to the next dollar and withdraws the difference to be added to your account.

With traditional brokers, investors have to buy whole shares of stock and the cost can be prohibitive. These services help those with little cash to spare put at least something aside and get a piece of the rising market.

It’s something to think about, especially for younger people. Even a little regularly invested every month can grow over time. And for older folks it provides at least some cushion for when the working years are over.