A survey sponsored by the American Institute of CPAs in 2012 revealed that 48% of 269 respondents give cash rewards to their kids on top of their daily allowances. These parents had no qualms about paying their kids for doing a good job.
But according to family counselling expert David Field, parents pay their kids because they are too anxious about their personal successes. However, good grades should be a function of work ethic. It is the responsibility of every kid to study well as a resident of the home. Paying them for good grades appeal to external motivation but does not contribute to internal motivation to achieve, to learn and to do good.
The best way to develop internal motivation is to create a strong message for your kids. An example would be: “Good grades represent our family. That’s who we are.” This way, you motivate your kids to perform well without the promise of financial rewards.