Money Tips - Good Grades = Money?

What You Should Think About if You're Considering Paying Your Kids to get Good Grades.

Advice Seeker: Dear April,

My husband and I expect our kids to get good grades at school and encourage them to do well for themselves and their futures. When they get their report cards, we tell them we're proud of them and usually take them out to dinner to celebrate their hard work and achievement. However, my good friend actually pays her son to do well in school. For every A on his report card, he gets $20, for ever B he gets $10, and for every C he gets $5. I don't believe she should be bribing her son to do well in school with money, and should instead be teaching him to get good grades for himself. What do you think?

Sincerely,

Work Hard for the Money

April Masini's advice:

Dear Work Hard for the Money,

Paying kids for getting good grades is an interesting choice that has pros and cons and is definitely something that each individual family needs to decide for themselves.

Things to consider when paying kids for getting good grades:

* Replace character with money. One of the things that paying kids for getting good grades does is to replace character and value with a payment plan. Instead of teaching children to do the right thing, or to get good grades because it's a way to have a better life, or to try and achieve good grades because it's what parents and teachers are asking students to do, parents replace good values with good money.

* When is the right time to teach money as a reward? Making money is a good thing when it's made honestly. It's also an important tool in life. Paying for grades is not a bad lesson -- but when it's taught in elementary school, the child is not offered the lesson to do the right thing for the sake of doing the right thing. That said, life is full of behavior and consequences. When a baby smiles at us, we reward that baby with affection and attention. A baby who does not smile as much is not as rewarded. A child who achieves -- by taking a first step, speaking a first word, or doing any number of things parents wait for their children to do -- is rewarded with non-monetary gifts like affection and presents.

* Don't make money the only motivation. If you do choose to reward your child with money for grades, soccer goals or not dating until a certain age, make sure that money is not the only motivator you use. Make it clear that being part of a family requires everyone to pitch-in whether they're paid or not.