Money for Grades

The concept of rewarding children and adolescents with money for good grades is not a new one. Parents all over the country have used this method, some finding an increase in their child’s grades, some not. This approach also has sparked a debate: some saying it is a short-term approach or that it promotes results instead of learning. On the other hand, it does prepare children for the real world, where your paycheck is often correlated with your performance and results.

The National Bureau of Economic Research has completed the first longitudinal study about the topic provides statistical proof that paying students directly for their performance is effective. According to the Newsweek, the participants in the study, Texas high-school students, who received a cash reward for passing Advanced Placement exams had better GPAs and also an increase in “college attendance, performance, and the likelihood of earning their degrees” down the road.

The positive effects of cash rewards were seen the most among minority participants, with “African-American students 10% more likely to enter college, and 50% more likely to persist through graduation”.
The study’s author Kirabo Jackson, a professor at Cornell University, says that cash rewards gives children an excuse to do well in school. Many children do not want to try to succeed in school because they will be perceived as geeky on not cool. By giving the children an excuse to succeed, children can say “I don’t like math; I’m saving for an Xbox”.

The cost of administering the program was about $200 per student, and with such strong results; this method seems to be investment worthy. While most of our education policies focus on early interventions and test scores; this method would not only cost less, but also yield more positive results.

This blog is based on an article from Newsweek titled “Why Paying Kids to Study Works in Texas” by Toni Dokoupil. To read this article, visit http://www.newsweek.com/id/234186.