New Wells Fargo Study Finds Parents Use Money Rewards to Motivate Kids

Parents are twice as likely to reward kids who achieve good grades than any other behavior

SAN FRANCISCO--(BUSINESS WIRE)--A new study from Wells Fargo finds that many parents are willing to use money rewards to motivate their kids to achieve results. From good grades to positive behavior, parents say money is a key tool to incentivize, teach, and reinforce values.

The study shows that nearly three-quarters of parents (72%) give their children money as a reward, with academic performance standing out as the top incentive for payment.

Parents use money with purpose

Parents are not handing out cash casually. They see money as a way to build important life skills.

• The majority say money helps kids understand what it means to earn and build a strong work ethic.
• Many view money rewards as more effective than punishment-based approaches.
• About 7 in 10 parents use money rewards.

“Parents are intentional,” said Louann Millar, leader of youth and student banking at Wells Fargo. “They are using money to influence outcomes and help kids build real-world habits early. For many, pay-for-performance starts at home at a young age, and money rewards are a common part of how families guide behavior and teach accountability.”

Good grades drive top pay

Performance at school drives the biggest reward.

• More than half (51%) of parents give money for good grades or academic achievement — two times more than the next highest ranked behavior.
• Other reasons to reward children include good behavior for a babysitter/care giver (24%), sticking with extracurricular activities (22%), and meeting a personal savings goal (20%).

The study shows while money motivates, it is not a guarantee. About half of parents (53%) say money rewards consistently lead to repeat behavior, and many parents also pair cash with other rewards, like family experiences or special privileges.

Talk to your kids about money

Parents are using money as a practical tool to motivate behavior and teach financial skills.

“Using money as a reward can be a simple, practical way to reinforce positive behavior and build their muscles around money,” said Millar. “It allows parents to recognize an accomplishment while also starting real conversations about saving, spending, and the difference between wants and needs. The dollar amount matters less than the discussion it creates.”

About the survey

These are findings of a Wells Fargo survey, with data collection provided by Ipsos, conducted between April 2 and April 15, 2026. For this survey, a sample of 1,500 parents and guardians aged 18 and older who are parents or guardians of a child between 6 and 17 years of age residing in the household were interviewed online in English. Respondents were asked questions about their child in one of the following age groups: 6 to 8 years of age, 9 to 11 years of age, 12 to 14 years of age, 15 to 17 years of age. If they had more than one child, they were randomly asked about only one of the age groups.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $2.2 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 33 on Fortune’s 2025 rankings of America’s largest corporations. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Additional information may be found at www.wellsfargo.com
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News Release Category: WF-CF