Money for good grades: A good idea or not?

We all know from experience that things don’t always run smoothly at school. Some children complete their school assignments with no trouble at all and are motivated about studying for exams – but in many cases, they need a little extra coaxing. That’s when lots of parents start asking themselves how they can encourage their children to work harder at school. Or alternatively, they wonder how they should react when their little genius comes home with good or even brilliant grades.

Parents may feel very tempted to reward good grades directly with money and give their child a 5-franc coin for a grade of 5 out of 6, and perhaps even a 10-franc note for a 6 out of 6. Money for good grades, a glowing report card or individual exams sounds like a simple solution. But what effect do financial incentives of this kind have on children’s motivation? Could a family trip to the zoo be a more appropriate reward? Or is it better to celebrate good performance without a reward at all?

Although rewarding good performance seems like a straightforward and tempting idea, rewarding achievements or exam grades with money makes little sense. This is because it focuses on measurable performance above all else. The message that parents convey to their children is that good grades at school are worth the effort. But other things, such as explaining something to a classmate, are less deserving.

In addition, financial rewards quickly lose their effect. Children’s thirst for knowledge and curiosity is much stronger and more sustainable than financial incentives. Experts distinguish between intrinsic motivation from a child’s own drive and extrinsic motivation as a result of rewards. If too much emphasis is placed on rewards, this often weakens the child’s inner motivation to want to learn.

Parents and guardians should also be aware that money for good grades can increase competitive pressure between siblings, although it’s difficult to compare grades given by different teachers in separate classes. There are many other factors that a child can’t influence, such as a particularly strict teacher or the weighting of individual subjects. If talents are unevenly distributed between siblings, this can penalize children rather than encouraging them individually. Giving children large material rewards, for example when they finish school or start high school or university, is therefore also considered to make little educational sense.

Nevertheless, parents can and should praise their children when they discipline themselves and work hard at something. It’s even better if the parent’s appreciation isn’t linked to specific grades. After all, failures such as a bad grade or a botched exam are also part of life.

What parents should actually reward or stimulate is their child’s commitment – to school, to an instrument, to a sport or to whatever else the child is interested in. It makes sense to reward progress in these areas. For example, if a child really doesn’t like reading, but still manages to read for half an hour every day for a week, then a small reward can show them that it’s worth sticking with it.

This means that praise and appreciation are still permitted even if a child fails an exam or gets a disappointing grade. The preparation, learning and practicing deserve recognition all the same.

But how can parents and guardians show their children that they appreciate their efforts? Praise, time spent together and small gestures are usually more effective than money, especially when children are younger (6–8 years). A family outing, a spontaneous visit to a restaurant or a chat while eating a special meal together can mean a lot, regardless of the last grades the child brought home. Then the children will realize that their efforts are noticed, even if things don’t always go perfectly.

Introducing fun elements can also help. Reading programs or small challenges such as reading for 10 minutes at a time make progress visible and promote the joy of learning without financial incentives. It’s important to agree on goals with the child that they actually have control over themselves. In this way, they gain confidence in their capacities and see that their commitment makes a difference.

Giving older children the right to have a say and more responsibility can be more valuable than offering them money. For example, young people could be allowed more freedom over their own budget or could help make family decisions about things like leisure activities and vacations.

Despite all the debate about rewards for good grades, one thing remains certain: children should learn how to handle money independently step by step – and this includes having their own money. Giving them regular pocket money, or a youth wage later on, is much better than performance-related financial rewards – which can lead to unnecessary pressure.