Read on our Knowledge Hub.
April is Credit Union Youth Month! To help shape your child’s financial future, we’re matching the first $5 in deposits for youth accounts* and hosting free, no sales-pitch online financial education classes! Click here to learn more.
Are you asking yourself if you should pay your children for good grades?
Some parents think an academic allowance is a great motivator for children, while others believe it sends the wrong message. Others believe it leads to kids lacking the motivation to do well unless money is at stake.
While criticisms are valid, paying for good grades can be an effective way to reward your children for their academic efforts.
Benefits of Paying for Good Grades
- Provides an incentive. While some kids naturally love to earn, some might need a little extra push. A monetary reward can be a constant incentive for kids tempted to slack off.
- Highlights the importance of education. It sends your kids a signal that you’re serious about their education – and that they should care too.
- Might save money in the future. High-achieving students have better chances of earning merit-based aid and scholarships when they enroll in college.
- Encourages responsibility. Receiving money for their grades will help your kids learn to take responsibility for their actions and decisions.
While you’re rewarding them for achieving good grades, it’s crucial to remind your kids that you’re rewarding them for their hard work, not the grade itself. You could even put their reward in their own savings account, which will grow in value over time and could be used to help pay for their college tuition or other expenses later on.
If you’re not fond of using money as a reward, there are other ways to motivate your children to get good grades. Instead of cash, you could reward their hard work with a movie night, a celebratory dinner or even extra time playing video games.
Regardless of the incentive you offer, be sure you give verbal encouragement and praise if they work diligently on their assignments. Even if they study hard and get poor grades, let them know how proud you are of them for putting in the effort.
Looking for extra resources to teach your kids the basics of money? Head to our Resource Center for videos, presentations, comics and fun activities for your kids to help them money basics! Also be sure to explore the topics of our Pop-Up classes this month for free, no sales pitch educational classes geared for both you and your young ones.