Magazine

6 Ways to Use Ellevest’s Roundup Option to Hit Your Money Goals Sooner

By Sofia Figueroa

When you turn on the roundup option at Ellevest, we automagically take the change from any purchase you make using your Ellevest Spend account and move it over to your Ellevest Save account. In other words, it’s a way to start saving your change every time you spend.

If you’re following a spending plan (or are, um, striving to be that person), rounding up your change is a way to sneak the change from purchases you’ve accounted for into something new. Which means it’s a very satisfying way to feel like you’re making the most of each dollar.

Rounding up your change can be a nice way to “set it and forget it” to jump-start your savings — and it can really add up. The average American makes 25.5 debit card transactions per month, so automatic roundup can add up to hundreds of dollars a month really quickly.

An illustration of some coins next to a toggle that indicates the roundup option is switched on, surrounded by shiny sparkles.

Here are a few ideas to use the roundup option to make your saving easier.

1. To start saving right away, even on a tight budget

When you genuinely can’t make room in your budget for saving for Future You, rounding up your change can help you start saving sooner than you thought you could. Even if you’re not spending much right now, just seeing your change add up can be a really significant emotional victory that keeps you going when money’s tight — especially if you pair it with earning cash back rewards on your everyday spending.* It’s also a great way to jump-start an emergency fund or get started on another goal you want (or need) to start on.

2. To help pay off your debt

If you’re working on paying down your debt, you can round up to add a little bit to your payoffs each month — every penny that’s more than your monthly minimum helps you pay it off faster. Round up your change into your Ellevest Save account, then put that extra money toward your debts each month. Here’s a way to decide which debts to pay off first.

3. To pump up a savings goal

Say you already have a line item in your monthly budget for making donations. Or holiday gifts. Or travel (someday). Rounding up can help you save a little more for that goal each month — maybe it helps you get there faster, or maybe it means you can spend a little more. (One suggestion: Round up to save up for a session with a money or career coach.)

4. To save up for something “fun” that’s not in your spending plan

If you’ve spent time making an intentional spending plan (aka budget), you’ve already taken the time to carefully consider where your money’s going and why. So you want to stick to it … but you also want to do something else that’s fun. You have options here. You could move away from your plan to do the fun thing and maybe regret it later. You could deny yourself the fun thing and — well, not have fun. Or you could turn your roundup savings into a piggy bank just for the fun thing.

5. To “tip yourself” for the fun stuff that’s already in your budget

Maybe you already have a certain amount in your spending plan for variable expenses — whether it’s a percentage of your overall spending or your weekly one number. But sometimes, you just want to treat yourself. Turn on the automatic roundup feature, and you’ve just given yourself a little something-something as an upgrade. (This one’s highly recommended if you have a milestone birthday coming up, by the way.)

6. To start investing sooner

If you’ve taken care of some of your financial basics (like an emergency fund and any high-interest debt), you might be ready to start investing. You can round up your change into your Ellevest Save account, then transfer it at regular intervals into an Ellevest investing account.

One note before you start swiping: “spending more to save more” can feel like a smart money move — but not if you start thinking about it as a reason to spend more than you’d planned. Instead, look at it as a nice little bonus for the daily spending you were already doing. (More fun that way, anyway.) Happy rounding!


Disclosures

The Ellevest Rewards program is powered by Dosh®, an unaffiliated third-party provider, which offers Ellevest banking members cash back on Ellevest debit card purchases from select merchants. Each Ellevest Rewards, Powered by Dosh program offer is available for a limited time only for qualifying purchases at participating merchants (subject to the particular offer and full program terms). Cash back amounts will vary and offers may become unavailable without notice. Additional terms, conditions and exclusions apply and can be found in the Ellevest Membership Terms and Conditions Agreement.

© 2020 Ellevest, Inc. All Rights Reserved.

*The Ellevest Rewards program is powered by Dosh®, an unaffiliated third-party provider, which offers Ellevest banking members cash back on Ellevest debit card purchases from select merchants. Each Ellevest Rewards, Powered by Dosh program offer is available for a limited time only for qualifying purchases at participating merchants (subject to the particular offer and full program terms). Cash back amounts will vary and offers may become unavailable without notice. Additional terms, conditions and exclusions apply and can be found in the Ellevest Membership Terms and Conditions Agreement.

If you activate the Ellevest roundup feature for debit card purchases, each settled (i.e. fully completed) purchase transaction made with your Ellevest Debit Card will be rounded up to the nearest whole U.S. dollar. The amount rounded up will be transferred from your Ellevest Spend account to your Ellevest Save account (a "Transfer"). Foreign purchases are rounded up to the nearest whole dollar after the purchase is converted to U.S. dollars. ATM withdrawals and transactions in whole US dollars, e.g. $20.00 are excluded from the Ellevest roundup program. If, at the time of settlement of a purchase, your Ellevest Spend Account has insufficient available funds to cover the full amount of the Transfer, the Transfer will not be made. If a purchase is canceled or reversed for any reason (including disputes), the corresponding Transfer will not be reversed. You can opt out of the Ellevest roundup feature at any time.

Banking products and services are provided by Coastal Community Bank (“Coastal”), Member FDIC, pursuant to license by Mastercard International. Your Ellevest Save and Ellevest Spend Account deposits will be insured to the regulatory limits by the FDIC through Coastal Community Bank, Member FDIC.

Funds held in your Ellevest investment accounts are not FDIC insured, not guaranteed by Coastal, and may lose value. Ellevest does not guarantee investment performance.

The information provided does not take into account the specific objectives, financial situation, or particular needs of any specific person.

The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities, and should not be considered specific legal, investment, or tax advice.

Investing entails risk, including the possible loss of principal, and there is no assurance that the investment will provide positive performance over any period of time.

Ellevest Membership fees are as follows: Ellevest Essential is $1 per month, Ellevest Plus is $5 per month, and Ellevest Executive is $9. Other fees as described in Ellevest’s Wrap Fee Program Brochure and the Ellevest Membership Terms and Conditions Agreement will continue to apply.

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Sofia Figueroa

Sofia Figueroa is a money coach at Ellevest. She works with Ellevest members to help them take financial control and make a plan to hit their money goals.