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.