Should parents pay kids for good grades?

To pay or not to pay...for A's

Ever wondered if you should consider money as a reward for academic performance? Many parents and experts have opinions in this area, both for and against paying for good grades. It’s a personal and subjective decision. Let's break down both sides to help you decide what’s best for your family. 

The pros of paying kids for good grades

Increased motivation

Some argue that paying kids for good grades increases their motivation to excel in their studies and can improve overall academic performance. Cory Arsic, founder of Canadian Parent, supports the idea that money can serve as an incentive. "Money can serve as a short-term incentive, especially for kids who struggle with motivation,” he says. 

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Real-world lessons

By linking hard work with monetary rewards, some believe it teaches kids valuable lessons about the relationship between effort and success in the real world. Parents who support paying for grades often compare it to earning a paycheck for hard work. “Some parents compare it to a job — effort leads to rewards,” Arsic explains. “Others use payments to teach financial responsibility, encouraging kids to save or budget."

Incentivized learning

With a tangible reward on the line, some argue that paying for good grades encourages kids to focus on and take their education and academic performance more seriously. Theresa Bertuzzi, co-owner and founder of Tiny Hoppers, notes that incentivized rewards don’t always have to be monetary. “Kids can be rewarded for their effort with a fun family time or a pizza night,” she says.

College savings

Some parents who offer money as a reward for grades may require kids to save some or all of their earnings toward future education, such as college tuition. This method teaches financial responsibility while ensuring the money serves a greater purpose. Instead of spending rewards immediately, parents can encourage kids to save part of their earnings for future educational expenses, helping them develop smart money habits.

The cons of paying kids for good grades

Short-term fix

Critics argue that paying for good grades is only a temporary solution and does not foster long-term intrinsic motivation or a genuine love for learning. Mary Willcox Smith, parenting expert and author of the book, Small Moments, Big Impact: The MicroStep Method® for the Overwhelmed Parent, warns that paying for grades is a short-term fix, not a lasting solution. “Many parents turn to paying for grades because it seems like a great way to motivate kids. Yes, bribes can work. Some even argue that money provides an incentive just like a paycheck does for adults, and in the short term, it can increase effort. Yes, it can. AND it’s a short term band-aid,” she says. “Research (and experience) shows that once the reward disappears, motivation often drops below where it started.”

Financial strain

For families on a tight budget, adding an extra expense of paying for good grades may cause unnecessary financial strain. If money is already tight, offering financial incentives for grades can become a source of stress rather than an effective strategy. Families may prefer non-monetary rewards, like family experiences, words of encouragement, or extra privileges.

Pressure to perform

Some believe that paying for good grades puts unnecessary pressure on kids, which might lead to feelings of anxiety or unhealthy competition among peers. According to Arsic, monetary rewards can sometimes backfire, leading kids to prioritize grades over actual learning. "When money becomes the focus, kids may prioritize grades over real learning,” he says. “They might take easier classes to maintain a higher GPA or lose motivation if payments stop."

Value of education

By attaching a monetary value to academic achievement, some argue that it diminishes the value of learning for its own sake and promotes a transactional approach to education. Willcox Smith explains that the real goal should be helping kids connect effort to results — not just to financial incentives. "Teaching responsibility isn’t about finding the perfect incentive — it’s about creating moments where kids connect their actions to real-world outcomes," she says.

Unnecessary exclusivity and unfair advantage 

Paying for good grades may alienate kids who struggle academically and reinforce the idea that only "good" grades are worthy of recognition and reward. Some also believe that paying for good grades creates an unfair advantage for students from wealthier families who can afford to provide monetary incentives.

Arsic also raises the issue of fairness, noting that not all kids have the same academic strengths. "Should a child who works hard but earns lower grades get nothing?” he asks. “If rewards aren’t balanced, they can create unnecessary pressure."

Instead of focusing on grades alone, experts suggest rewarding effort and persistence so all children feel recognized for their hard work.

Which should you choose?

Ultimately, the decision to pay for good grades depends on your family's values and individual circumstances. Consider discussing with your child about their motivations and goals, and ways to support their education with and without monetary rewards.

If parents want to encourage academic motivation without money, Bertuzzi suggests alternative rewards that focus on improvement rather than perfection. "A more balanced approach might be to reward progress instead of just achievement, recognizing improvement or persistence rather than focusing only on straight A's,” she says. “You also don't have to do this with money."

Willcox Smith agrees that kids don’t need money to stay motivated; they need to feel trusted and supported. "Kids don’t need to be paid for good grades—they need to trust that their effort matters, even when no one is watching," says Willcox Smith.

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