For most children under the age of 10, a loss of $65 is a tragedy of pocket-money proportions. For the children of Allison Ellsworth, co-founder and CEO of the prebiotic soda brand Poppi, it was a first lesson in market volatility.
In a recent interview with The Wall Street Journal, Ellsworth detailed her approach to introducing her three children—aged four, seven, and nine—to the world of investing. Following the reported $1.95 billion sale of Poppi to PepsiCo last year, Ellsworth and her husband, Stephen Ellsworth, have shifted their focus toward ensuring their children become “stewards” of the generational wealth the brand created.
The strategy is hands-on. Rather than tucking money away in passive trust funds, the couple opened three Fidelity investment accounts, seeding each with $5,000. The goal was not immediate growth, but visibility. By providing a sum significant enough to fluctuate, Ellsworth wanted her children to actually see the mechanics of the stock market in real-time.
The result was an immediate, if slight, dip in value. “The stock market hasn’t been great, so they lost $65, and their just, like, minds are blown,” Ellsworth told The Journal. For a child, seeing a balance drop is a visceral experience that no lecture on economics can replicate.
The Value of a Minor Loss
Financial educators often argue that the most critical part of an investor’s education is learning how to handle a downturn. By allowing her children to experience a loss of $65 on a $5,000 investment, Ellsworth is introducing the concept of risk while the stakes are relatively low.
When asked if the children were diversifying into Exchange Traded Funds (ETFs) or picking individual stocks, Ellsworth noted they were sticking to what she described as “safe” and “slim pickings” options. The portfolio currently includes blue-chip giants like Apple and Microsoft—companies that are ubiquitous in a child’s daily life, making the concept of ownership more tangible.
The most symbolic move, however, came from her oldest child, who used a portion of the funds to buy stock in PepsiCo. By doing so, the child has effectively become an investor in the very company that acquired Poppi, creating a full-circle moment of ownership and entrepreneurship.
Stewardship Over Spending
The transition from a scrappy startup to a billion-dollar exit is a jarring experience for any family. Ellsworth and her husband started Poppi in 2016, famously securing funding on Shark Tank while Allison was pregnant with her first child. Now, as advisors to the company they built, they are navigating the delicate balance of providing luxury while preventing entitlement.
Ellsworth admitted to enjoying the fruits of their success—citing a month-long family vacation in Europe, the hiring of a private chef, and the purchase of a new home near Austin. However, she is equally focused on the social dynamics of wealth. She noted that she and her husband are having “age-appropriate” conversations with their children about their windfall to ensure they don’t become “that kid in school”—the one whose wealth creates a barrier between them and their peers.
This philosophy of stewardship is a growing trend among high-net-worth founders who view money not as a reward, but as a tool that requires a specific skill set to manage. By integrating the children into the process of investing now, the Ellsworths are attempting to demystify the source of their wealth and the responsibility that comes with it.
A Blueprint for the Next Generation
The Ellsworths are not alone in this approach. A growing number of entrepreneurs are eschewing traditional “inheritance” models in favor of active financial literacy. For many, the goal is to move away from the “trust fund” stigma and toward a model of active management.
| Founder | Investment Vehicle | Primary Educational Goal |
|---|---|---|
| Allison Ellsworth | Fidelity Brokerage Accounts | Stewardship and market volatility |
| Daniel Ramsey | Roth IRAs | Compound interest and long-term saving |
| Dayssi Olarte de Kanavos | Low-risk brokerage funds | Demystifying company ownership |
Daniel Ramsey, founder of MyOutDesk, has advocated for the use of Roth IRAs for his children to emphasize the power of compounding interest over decades. Similarly, Dayssi Olarte de Kanavos, co-founder of Flag Luxury Group, introduced her children to investing in middle school, requiring them to explain why they chose a specific company before purchasing shares.
These varying methods all point to a singular conclusion: the most successful heirs are often those who are taught to treat wealth as a business to be managed rather than a bank account to be drawn from.
From Shark Tank to a New Chapter
The trajectory of Poppi—from a Shark Tank pitch to a multi-billion dollar acquisition—serves as a case study in the modern “better-for-you” beverage market. By leveraging prebiotic ingredients and a strong social media presence, the brand captured a generation of consumers moving away from traditional soda.
As the Ellsworths transition into their roles as advisors, the focus has shifted from scaling a business to scaling a family legacy. The $5,000 accounts are less about the eventual balance and more about the psychological foundation being laid. In the eyes of the founders, the $65 loss was perhaps the most valuable investment they made this year.
Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Always consult with a certified financial planner or tax professional before opening investment accounts for minors.
The family’s journey into wealth management continues as the children grow, with the next major milestone likely being the transition of these accounts into more complex portfolios as they enter their teenage years.
Do you believe children should be introduced to the stock market at a young age, or is it better to shield them from financial volatility? Share your thoughts in the comments below.
