It can pay to be a kid

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In the world of increasing pressure to succeed in the classroom, some parents are using cash as an incentive to get good grades from their kids.

A recent study from the American Institute of Certified Public Accountants said about half of all parents said they reward good grades with crash, and they pay an average of $16.60 for every A their child earns on a report card. 

Compare that to the average allowance, which the study said totals about $65 per month. 

Some parents say a cash-for-grades system doesn’t bring dramatic improvement in their children’s academic performance.  Some others disagree.

Reuters reported on one dad who said he gives his boys $100 for straight A’s on a report card.  Straight A’s for an entire school year will earn those boys a cool $1,000.

The dad said it started out as a joke but the kids took it seriously, so their new tradition was born.   The caveat – one B and the amount goes to zero.

Another dad said he covers his college-aged daughters gasoline bills in exchange for her keeping a grade point average above 3.0. 

The AICPA website says no matter how your kids earn money, it’s important to teach them how to manage the cash.  It’s a great opportunity to teach them to set financial goals, to live within a budget and the importance of saving for the future.