Bringing home an “A” on school work is a proud moment for many kids.
In more than half of American households, students get more than a pat on the back for a good report card. Many “A” students are cashing in with good grades.
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 doling 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.
|Reward for Each
Report Card 'A'
|Reward for Each
|Less than $1||2%||46%|
|$10 or more||19%||4%|
Not all kids can count on filling up their piggybank by acing classes. The rate of reward varies quite a bit depending on where you live, and the age of your parents.
Parents in Georgia, for instance, were more likely to reward top marks with cash (63 percent), and Oregonians were more likely to keep their wallets closed at report card time (35 percent).
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).
Rewards and Financial Education
The level of financial reward that resonates with kids is sure to differ. According to Erin Klein, a supervisor 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.”
Do you reward good grades with money? What do you think it is the right way to reward an ”A?” Let us know in the comment section below. For more financial tips and index findings, follow us on Twitter @helloCOUNTRY.