It can pay to be a kid

Posted on: 10:48 am, September 4, 2012, by

money

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.