For couples, being on the same page about how to manage personal finance is absolutely critical.
After all, money-related issues are an incredibly common reason for divorce or separation, or at the very least, a great deal of stress.
However, it can be challenging to manage your finances independently if you’re new to the idea of budgeting and investing. If you add another person to the mix, it can become even trickier.
Thankfully, if you’re trying to learn how to budget as a couple, you don’t have to start from the ground up.
Thanks to Twine, an app designed to help couples save and invest, it’s now easier to work together as a team to build a bright and happy financial future.
Stick around until the end of this Twine review to find out how you can best manage your money and understand the pros and cons of using this app.
Want to grow your finances even more? Consider some of the following investment and saving tools to grow your wealth!
- M1 Finance – A leading, commission-free online brokerage account that makes it easy to invest and build wealth.
- CIT Bank – An awesome online bank that’s ideal if you’re looking for a high interest savings account to grow your emergency fund or idle cash.
- BillShark – BillShark automatically negotiates your cable, internet, and other service bills to save more money each year.
Anyway, let’s dive in!
Twine App Review
Description: Twine is a saving and investing app for couples. Set saving goals, track your spending, and invest in Twine portfolios as a couple to grow your wealth.
Application Category: Investing
Author: Daniel Friedman
Ease of Use
What is Twine?
Twine launched in 2014, and at first glance, you might just think this is another app for budgeting and investing.
After all, Twine is pretty simple at the end of the day; this personal finance app helps you learn how to save, invest, and set goals to track your progress over time.
However, the competitive advantage of the Twine app is that it allows you to collaborate with your partner and contribute into your savings together.
This is not only beneficial for helping you save up for a major purchase, but it also makes for a great budgeting app for couples.
Twine does the heavy lifting for you by sharing advice on what’s the best option to go about building your wealth. All you have to do from that point is diligently save money and put it to work for you.
There’s no need to go out of your way and sign up at a physical branch. Sign up online with no hidden fees and have your money SIPC insured up to $500,000 in investment accounts!
How Twine Works – Investing
Twine emphasizes that investing doesn’t only have to be for retirement. In fact, investing comes with many other benefits, such as saving for a down payment on a house and putting your money to work for you.
And, like many other personal finance apps, Twine makes investing pretty simple.
If you decide to invest with Twine, you essentially invest in a pre-created Twine portfolio that’s designed to match your goals and level of risk-aversion.
In a nutshell, Twine invests in ETFs (exchange traded funds) to allow a greater diversity in companies and bonds while reducing overall risk on investing. You can also find portfolios with a decent chunk of bonds if you’re a more conservative investor.
You might be wondering… why not just save?
Well, investing comes with the benefit of increasing your rate of return at a higher rate than a traditional savings account (which often have a negative return when you consider inflation).
If that’s something you’re interested in, then you might want to consider opening up an investment account on the Twine app.
You can invest using Twine with as little as $5 with the following portfolios:
1. Conservative Portfolio
The conservative portfolio invests your money into a split of 94% bond ETFs and 6% stock ETFs.
According to Twine, this is usually a better option for people with these situations:
- You make less than $50,000/year.
- You don’t like financial risk.
- You have limited investing knowledge.
- Your savings goal is short term (less than 5 years).
If any of those situations apply to you, then you will prefer a conservative portfolio. The only downside of this is that your money will see a much smaller gain over the years.
Think of this as a low risk, low reward type of portfolio.
Honestly, this plan is only useful if you have a short-term investment time-frame since you don’t want to expose your portfolio to much risk if you only have a few years to invest.
If you’re investing for the long term, other Twine portfolios are a better call.
You can also check out M1 Finance if you want to take change of your own investing and invest in low-fee ETFs on your own!
2. Moderate Portfolio
The moderate Twine portfolio invests your money into a split of 55-70% stock ETFs and 30-45% bond ETFs.
This is a great option for couples in the following situations:
- You have a longer savings goal (around 15 years).
- You’re saving up for a large purchase.
- You don’t have as much of a problem with risk.
- You have a decent amount of investing experience.
The great thing about moderate portfolios is that your money has a higher chance of earning money over time while the short term gains can be volatile.
Think of this as a medium risk, medium reward type of portfolio.
3. Aggressive Portfolio
The aggressive portfolio invests your money into a split of 90% stock ETFs and 10% bond ETFs.
Twine suggests using investing in this portfolio if at least one of these describe your situation:
- Your annual income is over $200,000.
- You are a financially high risk taker.
- You have a lot of investing knowledge and experience.
- You have a far away savings goal (over 15 years).
Aggressive portfolios have more volatility, but also have the potential to give you the greatest return on your investment.
Twine somewhat over-states risk here, as ETFs are a great long-term hold and are diverse in nature.
This investing strategy isn’t exclusively for high-income households…as long as you have a long enough time-frame for investing, you can consider investing in ETFs more heavily to maximize growth.
Twine Goals – Budgeting & Saving For Couples
Twine’s main focus is in helping you reach your financial goal the right way.
Unlike other personal finance apps that are focused on the individual, Twine aims to help couples set goals and to work towards them as a team.
As a couple, you can create your own saving and budgeting goals within the Twine app.
Here are the current goals that Twine has recommended for your savings:
- New Home.
- Large Purchase.
- Emergency Savings.
- General Savings.
Your options of goals are endless if you use a bit of your imagination. These are just great examples of what you could be saving up for.
This feature might seem inconsequential, but visualizing your financial goals and progress is absolutely critical for building good financial habits and sticking to them.
Twine also lets you set me or we goals, which is ideal if you have separate finances but want to collaborate on some major saving goals.
As you save, the Twine app shows when you’ll reach your goal, as well as how much extra money you should save or invest if you want to speed up your progress.
How to Sign Up – Different Twine Accounts
Signing up with Twine will take you no longer than 5 minutes. Here is how the setup process goes down:
- Register with an email and password.
- Link your bank account.
- Provide a few extra personal details.
- Confirm your account.
- Start saving.
Twine actually lets you grow your money in 2 ways: by saving cash or through investing.
This flexibility is nice because after you sign up for Twine, you can decide what type of savings account or investment portfolio you’d like.
If you’re learning how to invest but don’t have the funds yet, saving in cash is a great place to start.
You can even set up recurring deposits and invite your partner to join your account to grow even faster!
In contrast, if you’re ready to invest, you can start your own Twine portfolio to kickstart your wealth building in earnest.
Once you decide on how you’ll save, you can deposit or withdraw your money at any time without any hidden fees.
Tracking your money is as easy as opening up the app and checking your performance over time.
How Much Does Twine Cost?
Twine costs $0 for a regular savings account. An investment account costs $0.25/month for every $500 invested.
Meaning, if you have $10,000 invested, you’re paying $5/month to keep your investment account.
In other words, this is an annual fee of 0.60% for using Twine to invest your money.
It’s worth noting that this fee doesn’t consider fees associated with ETFs/your portfolio’s holdings, although ETFs are generally low fee anyway.
Deposits and withdrawals are completely free at all times. The only thing you’re really paying for to use Twine is the investment account fee.
Twine’s fee structure is fairly similar to robo advisors like Wealthsimple and spare change apps like Acorns.
Ultimately, these fees aren’t the end of the world, but if you know how to invest on your own, it’s probably worth considering opening a zero-fee online brokerage account to invest on your own.
Two popular online brokerages are:
- Webull – Zero commission trading and frequent free stock promotions make Webull an awesome online brokerage to consider.
- M1 Finance – As mentioned, M1 Finance is one of the easiest ways to start investing on your own without having to worry about a slew of fees.
It’s also worth noting that Twine works with a finance company called Apex Clearing Corporation which manages some of the transfers in the investment account. Twine is not responsible for any fees incurred through Apex such as wire transfers, paper delivery, or insufficient funds.
Assuming you won’t be using any of those features, then you’re essentially still just paying for Twine’s fees.
Is Twine Safe?
Yes, Twine is a completely safe app to have on your phone and invest with.
Twine never stores your bank login information and uses bank-grade security and encryption to keep your account and money secure.
With a savings account, you are also FDIC insured up to $250,000. With an investment account, you are SIPC insured up to $500,000!
Twine also employs leading security firms to do regular checks on your data encryption and money safety. Plus, your money is backed by John Hancock Personal Finance Services.
Rest assured, your money isn’t going anywhere. Especially considering the high insurance limit on your money.
Pros and Cons
As previously mentioned, this Twine review will include an easy to understand list of pros and cons for you to determine if Twine is right for you!
If you’re considering using the Twine app, here are some of the reasons to follow through!
- Professional financial advice.
- Ability to save with a partner and set budgeting goals as a couple.
- Free savings account.
- Multiple savings goals to choose from.
- Simple pricing that’s fairly competitive.
Twine is a useful app for couples, but the app isn’t without some flaws:
- $0.25/month for every $500 invested, which isn’t ideal if you know how to invest on your own.
- Limited freedom in investment choices since there’s only 3 portfolios.
- More geared towards milestones (less about general investing).
I’d say the only real con you’re looking at is the pricing which is slightly more expensive than many other investing platforms today.
If you’ve been looking for an app that helps you save up for a big purchase or milestone and you want to include your partner, then the Twine app might be right up your alley!
Other Savings Ideas for Couples
If you’re still interested in something different to hit your savings goals, consider looking into a few other available options:
- High Interest Savings Account – the CIT Savings Builder is an excellent online option with competitive interest rates.
- Robo Advisors – These typically have similar fees to Twine but offer more portfolio options. Wealthsimple is a decent choice to consider.
- Budgeting Apps – Mint, You Need A Budget, and plenty of other budgeting apps make it easy to automatically track your spending.
- Living Off One Paycheck – Couples looking to save more money can try to get their saving rate as high as possible, living off one or even less than an entire paycheck, if possible.
Every couple will have a different option that works best for them. Here’s the main thing you should keep in mind…
Saving starts with a financial goal, and a financial goal starts with a budget.
No matter where you decide to put your money, budgeting and tracking your finances will always be important to reaching that goal.
If you want even more idea for how to save money as a couple, checkout our recent video on tips to boost your savings rate!
There’s no doubt that there are better places to put your money than a regular bank nowadays. Tons of saving and investment platforms are already showing a higher return compared to banks.
Is Twine your best option for saving and investing? Well… it really depends on your situation.
If you are in a relationship where you’d like to share your finances openly and reach certain goals together, then I believe Twine has everything you need to achieve that.
However, if you save by yourself or have no real financial goal in mind aside from retirement, then there just might be a better platform out there for you.
Additionally, if you know the basics of investing, you can take charge of your finances and invest through your bank or a variety of online brokerages.
Ultimately, the Twine app is truly ideal for couples who are learning the basics of financial management and wealth building.
Take a good look at your (and your partner’s) situation and evaluate what works best in your mind.
Who knows… you might find that Twine is the way to go!
Thanks for reading our Twine app review! Hopefully, it’s help clarify what to expect from this budgeting app for couples.
Daniel is a 20 year old blogger from Los Angeles with a huge love for everything entrepreneurship, finance, and investing. When he’s not blogging at Modern Teen, you can catch him playing volleyball, shooting archery, or finding new ways to make money.