YOUR MONEY

CREDIT, COLLEGE, TAXES AND REAL ESTATE

Home > Your Money > College & Family > Column

COMMENT

BUZZ UP

DIGG THIS

MONEY SMART KIDS: RECENT COLUMNS

PLUS: OTHER COLUMNS

FEATURED SLIDE SHOW

What You Need to Know About
Your Money-Market Fund

Make the right moves to save time and money.

Top 5: Your Money Tools

TODAY'S MOST E-MAILED STORIES

PLUS: See Our Slide Shows

KIPLINGER'S MONEY POLL

What effect do you think an Obama presidency will have on the market?

MONEY SMART KIDS

Pay Kids for Good Grades? Bad Idea

Once you start down this slippery slope, you have to keep raising the stakes. Here's why it's better to pay a compliment than cash.

By Janet Bodnar

October 3, 2007

A plan by New York City's mayor Michael Bloomberg and schools chancellor Joel Klein to pay fourth- and seventh-graders for high test scores has prompted plenty of reaction.

In a tongue-in-cheek blog written by "NYC public school parents," the authors note that the kids are holding out for higher compensation. And a group of students calling themselves "Fifth- and Eighth-Graders for Fairness" are demanding retroactive pay for last year's tests.

In the Christian Science Monitor, one mother recounts a conversation between her 13-year-old son and his friends comparing rewards for their good report cards: a laptop for straight As, a cell phone, $10 per A. "What about high school and beyond?" frets Mom. "What would be left after the electric guitar, the portable DVD player and the iguana in the bedroom?"

Although these comments are meant to be humorous, they highlight a couple of serious problems with paying kids for grades. Because once you start down this slippery slope, you have to keep raising the stakes. And once kids get old enough to earn their own money, you lose leverage.

Not to mention that this kind of deal doesn't always work. Child psychologist Sylvia Rimm points out that for high-achieving students, money doesn't matter. And, Rimm says, kids who are underachievers fail because they're inconsistent. So if they slip and get a poor grade, they figure that they're not going to get the reward and give up. Even worse, parents sometimes end up paying them for half measures and the system backfires.

In my experience, paying a compliment is better than paying cash. Reward good grades -- or consistent effort -- by giving your kids a hug, a word of encouragement, or a spontaneous treat -- anything but money. That way kids learn the personal satisfaction that comes with a job well done.

Sometimes money can be too powerful a motivator for parents to resist. But even then it seems to work best in small amounts and limited circumstances.

One dad I know came up with a set of financial incentives to reward his 11-year-old son for good study habits and improved grades even if the grades weren't As. But the boy was also motivated by a conscientious teacher and by his dad, who took an interest in his progress.

Maybe Mayor Bloomberg should take a lesson from the movies. In every film about kids overcoming odds to reach a goal (think To Sir, With Love, Stand and Deliver, Hoosiers, Coach Carter), the hero is either an inspirational teacher or a tough-as-nails coach who achieves success by holding the kids to a higher standard -- not by holding out a paycheck.

VIDEO: Janet Speaks Out on ABC News

MONEY SMART KIDS:
Send Janet your questions. She can't answer every one, but she'll answer as many as she can. If your question isn't published within a few weeks, scan the archives to see if Janet has covered the topic before, or start a discussion in the Kiplinger.com Community.

Name:
E-mail address:
Subject (optional):
Question/Comments:

READER COMMENTS

Post a comment

Hide comment form

Read all comments (14)

Read recent comments

POSTED BY: Nomen (October 03, 2007 09:33 AM)
It's amazing how many experts miss the concept of teaching kids about reality. I was asked once how I got my boys interested in going to college. My answer: From the time they started school we never talked about them doing anything else. From preschool on, we emphasized the importance of a good education and good grades. We always made sure the homework was done and often would sit down and go over it with them. They understood that they were working for themselves and that their long term investment would pay off for the rest of their lives. THIS IS REALITY and it motivated them all through their education. Today both are successful engineers with advanced degrees.

POSTED BY: Performance Matters (October 03, 2007 03:54 PM)
I've instituted a different strategy for my children. Since they were in jr. high, I told them that I would pay for college using the following formula: (your high school GPA)/4.0 = my contribution percentage towards college. This teaches my children to strive towards long term goals as well as set and maintain high standards.

POSTED BY: Mel (October 03, 2007 07:08 PM)
I support paying for grades. I have two girls that took pride in their grades and making $50.00 for straight A's. I divided up from the amount of classes and set the price accordingly. I paid for A, B and C. If a D was made then they paid me. An F and they were grounded. for the most part my girls were A/B students. They also had an alarm clock since 3rd grade to get ready for school on their own. I checked to make sure the got up but I must say that they did better than me at that age.

POSTED BY: Sam (October 04, 2007 07:16 AM)
Interesting article, but if financial rewards do not work,why do we pay our corporate executives millions of dollars in bonuses? Maybe the shareholders should just give them a hug instead. We now have the highest and growing higher HS drop out rate of any industrial nation...we better try something fast before we become a Third World nation down the road.

POSTED BY: Greg (October 04, 2007 11:38 AM)
Few things will motivate a child to do their best as well as involved parents, and being there to help your kids with their studies and making sure homework is done is a great way improve grades. But in life after graduation (high school or college) people are paid for 2 things: what they know and what they can do. The more you know and the more you can do equals more pay. Paying a child for making good grades can be a good way of illustrating this. The better your grades, the better you reward. Each child is different and I am not saying to pay for only straight A's. All children and not capable of attaining that level. But the goals should be set at a level that will require the child to push to do their best.

POSTED BY: Mary (October 04, 2007 05:18 PM)
I also support paying for grades. My kids (teenage boys) could care less if I stood on top of the world and shouted "WOW YOU DID GREAT". However tell them that there will be a "cash" reward at the end of the quarter and by some miracle A's and B's. I also, would like to see what would happen to Corporate America if big fat hugs and "Hey -- great job" was given out instead of the cash bonuses. Funny! As for the "movies" being an inspiration for these helpful teachers -- come on -- have you been inside a classroom lately and talked to our teachers? Most of them don't care. And why?? Have you seen thier paychecks? Maybe they need to hug a shareholder!! Unfortunately we are a money driven society. And that's just how it is.

POSTED BY: Paul (October 04, 2007 09:46 PM)
I pay my 14 year old for getting good grades in school, and I think it's great because they can earn a dollar for work being done. I pay $10 for A's $5 for B's and if there are any F's there will be no more rewards for the rest of the school year. I also pay my kids an allowance for working around the house, keeping their bedroom clean, vacuuming, etc. They also have goal books, and personal savings accounts. I have taught my 14 year old to save 15% of whatever she makes, and forget about it. Now she has been doing it for two years now and has over $800 in her account. Pretty good for a 14 year old.

POSTED BY: Kathy (October 24, 2007 08:06 AM)
I don't think it's such a bad idea. In the late 60's and early 70's, my dad would pay me $20 if I brought home all A's on my six weeks report card. My mother was opposed to him doing that, but that's one thing he held his grounds on. If you put that in an inflation calculator, I guess that would be the equivalent of $100 in today's money. I saved every bit of it. I used it to buy my high school class ring and my clothes for college. Nothing was ever wasted or misused. I think I was motivated enough that I would have gotten the A's anyway, but the money was a well deserved reward for all my hard work, and I think it was a great idea.

POSTED BY: helen (October 26, 2007 12:46 AM)
I GIVE $50 LUNCH ALLOWANCE FORWARD TO HIS LUNCH EACH MONTH, LUNCH IS ABOUT $90.00 A MO.AND HE MUST ACHIEVE AN "A" ON TEST TO EARN $5.00 AND "A" ON HOMEWORK FOR $1.00, SO FAR I SEE FEW "A" AND HE IS HAPPY AND I AM HAPPY TOO.

POSTED BY: Stephan (November 19, 2007 05:14 PM)
My parents payed me during high school for my good grades. However, they showed me the flip side of the deal too if I received any D's or F's I was required to pay them the equivalent for a B or an A respectively.

POSTED BY: Rosie (April 21, 2008 05:02 PM)
My parents never paid me anything for any grades. They always told me that was my job. As a child that was my responsibility and they would compare it to their jobs. Their job was to provide for the family and my job was to bring good grades. My husband was paid for his grades but it backfired because right now he's having lots of troubles with becoming independent, responsible and maturing...

POSTED BY: Me (July 24, 2008 11:56 AM)
I saw an special about this project in NYC headed by a professor from Harvard and I do not agree with rewarding either the students (with cash) or parents (with tax deductions) for students getting high grades. Students should not be rewarded for what SHOULD be expected. Instead, parents should be punished when their child does not perform at a certain level (ie they should not be able to claim the child on their tax return).

POSTED BY: Penelope (August 30, 2008 05:33 PM)
Coming from a money-conscious family and being named Penny (the least amount of money), I believed I had no worth to my family. I was also told I was born early because my dad needed his little "tax deduction" to be born before the end of the year. I was paid $1.00 for getting an "A" and it was a definite incentive. I've spent most of my adult life chasing the almighty buck to feel validated as a human being. I love my parents and know they did what they believed was the right thing. I did not do this practice with my daughter. She does not tie her self worth into how much money she has. Thank God!

POSTED BY: Rod (October 18, 2008 10:53 AM)
This article is totally wrong. Under the Bloomberg plan Kids don't get paid, Parents get paid. not that I'm Ok with that...

MORE: Kiplinger.com | Your Money | College & Family | Column

TOOLS:

E-Mail Article |

Print Article |