Finhabits Review: Start Investing With Just a Few Dollars per Week

finhabits review

One rule of thumb when it comes to retirement savings says you should have six times your annual salary saved by the time you’re 60. According to the National Foundation for Credit Counseling, however, 27 percent of Americans don’t save any money toward retirement.

But you don’t need to have a lot of extra cash lying around to save for retirement. In this Finhabits review, you’ll learn how you can start saving for your future for the price of a sandwich.

Finhabits review

Finhabits was created to help people who don’t have a lot of room to invest. When Carlos Garcia founded the company, he had certain people in mind — specifically, those who don’t have access to employer-sponsored retirement accounts.

There’s no minimum amount required to open a Finhabits account, and you can start investing with as little as $5 per week. But before we dig into the details, here’s a quick list of what we like about Finhabits and what to watch out for.


  • There’s a low minimum investment requirement.
  • You can earmark your investments specifically for retirement.
  • You don’t need to be a savvy investor because Finhabits helps you set up your portfolio.


  • The monthly fee can be costly if you’re not investing a lot.
  • You must meet weekly minimum contribution requirements.
  • It isn’t the best choice for hands-on investors because of limited investment options.
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Finhabits investment accounts

Finhabits offers taxable investment accounts and individual retirement accounts (IRAs). For the latter, you can open a traditional or Roth IRA account with the company.

When you open an account, you’ll let Finhabits know what your investment goals are. Then, Finhabits can help you set up an investment portfolio based on your risk tolerance and priorities.

Finhabits invests your money in a variety of exchange-traded funds (ETFs). An ETF is a collection of stocks and bonds in one fund that offers the benefits of diversification and low costs.

You can then set up automatic deposits into your Finhabits account, starting at just $5 per week.

Over time, your portfolio might fall out of balance if your asset allocation strays from your goals. You also might receive dividends from your investments. In these situations, Finhabits automatically rebalances your portfolio and reinvests your dividends so you don’t have to worry about it.

Finhabits review: Using the online platform

If you’re interested in opening an account with Finhabits, the process is straightforward. You’ll start by picking which account type you want: an IRA or a taxable investment account.

finhabits review

Image credit: Finhabits

If you choose an IRA, you’ll be asked your age, risk tolerance, and initial deposit amount as well as how much you plan to deposit weekly.

If it’s a regular investment account, you’ll state how much money you need to reach your long-term goal and how much you can contribute weekly.

For both types of accounts, Finhabits shows you how much money you’ll have based on your answers and time horizon.

finhabits review

Image credit: Finhabits

Next, you’ll create an account with your email address and a password and create a profile with the following information:

  • Legal name
  • Date of birth
  • Gender
  • Phone number
  • Marital status
  • Address

You’ll then answer some legal questions and read and agree to Finhabits’ service agreement.

To give Finhabits a better idea of your financial situation, you’ll answer some questions about your employment, income, tax filing status, net worth, and investing experience. Your answers will give the company a better idea of how to guide your investments.

Based on this information, Finhabits will recommend an account type — for example, whether you should go with a Roth IRA or a traditional IRA. You can go along with the recommendation or opt for another account instead.

finhabits review

Image credit: Finhabits

Lastly, you’ll get a portfolio choice by sharing more about your investment goal, contribution amounts, and the level of risk you’re comfortable with. Based on the information you enter, you’ll get a breakdown of what the company thinks would be a good fit.


Image credit: Finhabits

Once you confirm your portfolio choice, you’ll be asked to enter your Social Security number to verify your identity. Then, you’ll be able to connect your bank account and start making contributions.

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Finhabits review: Fees and expected returns

Finhabits charges the following fees:

  • A flat fee of $1 per month on balances under $2,500
  • An annual fee of 0.50 percent on balances of $2,500 or more
  • An average annual fee of 0.12 percent charged by the ETFs in which the advisory service invests your money

Although a $1 monthly fee doesn’t sound like a lot, it’s above the industry average of 1.02 percent until your account reaches $1,176:

$12 per year / .0102 = $1,176.47

If you’re planning to invest a lot, it might not be an issue. But if you’re investing only $5 per week, it’ll take you a while to get to that point.

Regardless of which type of investment account you choose, there’s no fee for opening an account. There’s also no fee to transfer money from another investment account to Finhabits, although the other investment firm might charge a fee.

According to Finhabits, the expected return on its conservative portfolios is 2 percent to 3 percent. On its aggressive portfolios, it has an expected return of 6 percent to 8 percent. Keep in mind, however, that returns aren’t guaranteed.

Finhabits review: Eligibility requirements

To open an account with Finhabits, you’ll need the following:

  • Email address
  • Phone number
  • Social Security number
  • U.S. residential address
  • Valid bank account with a U.S. bank

Additionally, you’ll need to be at least 18 years old and a U.S. citizen or permanent resident to open an IRA account.

Finhabits customer service

If you have any questions about Finhabits before or after opening an account, you can reach its customer support team by calling 1-800-492-1175 or emailing Alternatively, you can reach out on social media via Facebook or Twitter.

Should you invest with Finhabits?

Finhabits isn’t the only micro-investing platform out there. But as of November 2017, it’s the only major one that offers retirement accounts.

For people who don’t have access to an employer-sponsored retirement plan or don’t have enough money to make big contributions, Finhabits is a worthy option.

If you don’t need a retirement account, however, apps like Acorns and Stash offer similar taxable investment accounts without minimum weekly or monthly contribution requirements.

Although Finhabits’ monthly fees can be hefty for small investors, they’re no different than those of other micro-investing platforms.

To determine if Finhabits is right for you, consider your investment needs and goals. Then, check out the competitors to see which option works best for your financial situation.

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