COUNTRY Financial Security Index
Parents Weigh In: What is an ‘A’ Worth?
For more than half of American households good marks on a report card have gained kids more than just recognition on the refrigerator door.
The latest COUNTRY Financial Security Index® examined Americans’ current sentiments on the topic of teaching their children about finances through the use of rewards and allowance. The survey found that 52 percent of parents provided money for good grades.
When it comes to top marks, parents reported giving out an average of $15.58 per report card “A.”
For 46 percent of households, good grades between report cards also put some cash in the pockets of students, with an average of $7.50 for an “A” on tests or assignments.
Younger parents are more likely to reward kids with cash for report card achievements. 57 percent of Millennials report they are likely to provide money for grades compared to Gen X (51 percent) and Baby Boomers (43 percent).
The level of financial reward that resonates with kids is sure to differ. According to Erin Klein at COUNTRY Financial, the amount of reward (or if the award is even monetary) matters less than the message behind the effort.
“Setting a goal tied to a responsibility is a good way to educate kids on the very basics of finances,” Klein said. “To get kids thinking of where money is coming from and how to think about ‘income’ provides an opportunity for them to think about the value of their work and how they want to plan ahead.”
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