Earlier this week we had a financial literacy workshop with the students at Dowen College. During the session, we asked how they were currently earning money, and one
student shared that her mom pays her for good grades.
Hearing that took me back to my own school days—I remember my parents promising me a bicycle if I came first in class. That term, I worked harder than ever, and when
I finally got first place, they kept their word. That bicycle felt like the best reward in the world!
These days, more parents are using money as an incentive for academic performance, but not everyone agrees with the idea. Some parents wonder, “Will paying my child
for good grades motivate them to work harder, or will it make them value rewards over real learning?”
In this post, we’ll break down the pros and cons of rewarding for good grades, the key factors to consider, and how to create a system that motivates your child without
making money the only goal. Regardless of your perspective on this, by the end of this post, you’ll have a clearer idea of what works best for your child and your family.
The Case for Rewarding Kids for Good Grades
There’s a reason many parents choose to reward their children financially for good grades—it works. At least, for some kids. Money is a tangible motivator, and just like
adults work harder when there’s a bonus or salary raise at stake, kids may push themselves more when they know there’s a direct reward waiting for them.
Here are some benefits of using money as an incentive for academic success:
1. It Teaches the Concept of Hard Work and Reward
One of the first lessons children learn about money is that you have to work to earn it. Tying money to academic performance reinforces this idea: when they put in the
effort, they see results—not just on their report card, but in their wallets. This mirrors real life, where people are rewarded for their skills and achievements.
For example, if your child struggles with a subject and knows that improving will lead to a financial reward, they might be more inclined to put in the extra time needed to
get better. Over time, they’ll develop discipline and a habit of working toward goals, which is a skill that will serve them well beyond school.
2. It Helps Kids Prioritize Academics
Let’s be honest—many kids would rather be watching TV, playing video games, or scrolling on their phones than doing homework. Offering a financial incentive can help
them see studying as a priority rather than a chore. If they understand that good grades can lead to a financial reward, they might be more likely to stay focused,
complete assignments on time, and put more effort into studying.
Some parents even structure their rewards to encourage consistency. Instead of just paying for final grades, they offer small incentives for completing homework without
being reminded or studying for a set amount of time each day. This way, the habit of learning is reinforced, not just the final result.
3. It Prepares Them for the Real World
In the real world, people get paid for their performance. Employees who do well at work may get promotions or bonuses, while those who don’t meet expectations may
not see any extra rewards. Paying kids for good grades can be a way to introduce them to this reality early on.
4. It Encourages Financial Responsibility
When kids start earning their own money—whether through good grades, chores, or side hustles—they begin to understand financial responsibility. Instead of always
asking their parents for money, they can learn to save, budget, and make decisions about what to spend on. This way, they’re not just learning how to earn money but
also how to use it wisely.
Now let's explore the downsides of this approach and why paying for grades might not always be the best idea.
The Downside of Rewarding Kids for Good Grades
While paying kids for good grades can be a strong motivator, is it the best way to encourage a love for learning? Here are some reasons why rewarding grades with
money might not be the best approach:
1. It Can Kill Intrinsic Motivation
One of the biggest concerns about paying kids for good grades is that they may start working for the money instead of for the joy of learning. The best kind of
motivation is internal—the feeling of pride that comes with mastering a subject, the curiosity to explore new ideas, and the satisfaction of achieving a goal.
When children are only focused on the reward, they might stop caring about the actual learning process.
2. It Might Lead to Shortcuts Instead of Effort
If children know that good grades equal money, some might take shortcuts to get there. Instead of truly understanding the material, they might be tempted to memorize
just enough to pass an exam or even cheat to secure a higher grade.
Education should be about understanding and applying knowledge, not just collecting high scores.
3. It Puts Too Much Emphasis on Grades
Good grades are important, but they’re not the only measure of a child’s intelligence or potential. Some kids are naturally gifted in academics, while others excel in
creativity, sports, or problem-solving.
If parents only reward high grades, children who struggle with certain subjects might feel discouraged, no matter how hard they try. A child who works really hard to
improve from a C to a B may feel overlooked if only A’s are rewarded. This can lead to frustration and a belief that effort doesn’t matter—only results do.
4. It Can Create a Transactional Mindset
In real life, not everything comes with a financial reward. If children are always paid for their achievements, they might start expecting a reward for everything they do—
cleaning their room, helping a sibling, or even studying for an exam.
This can lead to a mindset where they only do things when there’s a material benefit involved, rather than learning the value of responsibility, discipline, and personal
growth. Parents might find themselves in a situation where their child refuses to do things unless there’s money on the table.
Factors to Consider Before Rewarding Your Child for Grades
Before deciding whether to pay your child for grades, here are some factors to consider:
1. Your Child’s Personality and Motivation Style
Some kids are naturally competitive and love the idea of rewards, while others might not be interested in money at all. Parents should ask themselves:
Is my child motivated by external rewards, or do they already have a strong drive to learn? Will money help them stay focused, or will it distract them from real learning?
For example, if your child already enjoys learning and takes pride in their achievements, paying for grades might not be necessary. But if they need a little extra push,
financial incentives could be useful—at least in the short term.
2. The Subjects and Effort Level
Not all subjects come easily to every child. A student who excels in math might consistently earn A’s with little effort, while another might work twice as hard to get a B in
English. Should both be rewarded the same way?
Instead of only rewarding top grades, consider recognizing effort and improvement.
3. Other Forms of Motivation
Money isn’t the only way to reward hard work. Alternative rewards could include:
- A special outing to their favorite place
- Extra screen time or a movie night of their choice
- Letting them pick a family activity
- Simply celebrating their hard work with words of encouragement
- Sometimes, a simple “I’m proud of you” means more than any amount of money
4. What Message Are You Sending?
Parents should also think about the long-term message they’re sending. Is the goal to make kids see school as a job they’re paid for, or to help them develop a lifelong
love of learning?
If you do choose to reward grades, it’s important to combine it with conversations about effort, personal growth, financial management, and the importance of
knowledge beyond just test scores.
Finding the Right Balance
Paying kids for grades isn’t necessarily a bad thing—but it’s important to be mindful of how it shapes their attitude toward learning. The key is balance.
More than anything, kids should understand that learning has value beyond just grades. Instead of asking, “Should I pay my child for good grades?” A better question
might be, “How can I encourage a love for learning while also recognizing their hard work?”
This shifts the focus from just rewards to something bigger—raising children who are curious and take ownership of their own growth.