Teaching Kids About Investing
Allison Ellsworth, the CEO and co-founder of Poppi, has taken a unique approach to teaching her three young children about investing. She recently shared that she opened $5,000 investment accounts for each of them, aiming to instill financial knowledge early on.
In a conversation with The Wall Street Journal, Ellsworth explained how she and her husband, Stephen, talk to their kids about money, especially following their significant windfall from selling Poppi, a prebiotic soda brand, to PepsiCo for $1.95 billion. Their children, aged 4, 7, and 9, express keen interest in the world of investments.
Despite a rough start where the kids lost $65 due to a downturn in the stock market, Ellsworth continues to encourage their interest. “We opened them three Fidelity investment accounts,” she said. When asked about their investment choices, she revealed that they lean towards what she describes as “safe” stocks, mentioning popular companies like Apple and Microsoft.
Each account began with $5,000, which she believes is a reasonable amount. “It’s a lot to watch kids grow up with,” she noted, reflecting on the significance of the investment amount. “But honestly, putting in $100 or $200 doesn’t really accomplish much. So we thought $5,000 was a solid starting point.”
It’s also heartwarming for her to see her older child express pride in owning stock in PepsiCo, calling it an investment in the family’s brand. Ellsworth and her husband prioritize open discussions about finances, wanting their children to understand the concept of wealth and the responsibilities that come with it. “I want them to be stewards of this generation’s wealth,” she added, emphasizing the importance of learning together.
Ellsworth co-founded Poppi in 2016 while pregnant with her first child, eventually exiting the brand after its acquisition last year. Now, she’s enjoying the fruits of their labor with a family trip to Europe and some personal indulgences, like hiring a stylist and a chef, in addition to purchasing a new home near Austin.
Other business leaders are also advocating for early investment education. Daniel Ramsey, the founder of MyOutDesk, shared last year that he set up Roth IRA accounts for his children to teach them about saving and the power of compound interest. Similarly, Deisi Olarte de Canavos, co-founder of Flag Luxury Group, has given her children a modest sum to invest and encourages them to explain their choices, making the process more accessible.
