I was a good student growing up. I always got good grades so it was never really an issue. Same with my wife. And now (we're hoping), it's the same with our kids. At least so far.
My wife and I try to instill the importance of education in our kids. We try to show them that they need to go to school and learn as much as they can. How else are they ever going to become Video Game Makers when they're older?
We certainly encourage our kids to do well in school and praise them for working hard. But we've never rewarded them for a specific grade on their report card. I find it sad, actually, that some parents will pay their kids for every single A that they get on their report card. This is just all kinds of ridiculous to me.
I pay enough school taxes as it is already. I'm paying the teachers' salaries, but now I gotta pay the students to learn too? That just seems idiotic to me and a complete betrayal of the entire education system.
I'm all for encouragement and positive reinforcement. Your kid gets an A, that's fantastic. Let them know how proud you are. Heck, even if your kid gets a C, if they normally get Ds and worked their butt off to get a C, they deserve some praise. It's all about putting in the effort and doing your best. In the end, that's the ultimate take away from school.
You're also setting a horrific example by paying kids per letter grade. So what if they don't really care about the money at the moment? Maybe they just had a birthday and got a ton of dough. So now they don't bother putting in any effort and they get Ds. Oh, well. Too bad. Kids have a horrible sense of money to begin with, so you're not really helping at all.
The knowledge kids get and the self-confidence they nurture is the true reward of going to school. Yes you can do something nice or fun for your kids if they do something extremely well. Go out to dinner. See a movie. But don't make it a habit that's predicated on the exact letter grade he or she gets on a report card.
As for grading the parents, well if they're paying their kids to learn, I'd have to give them a big fat F!
Do you pay your kids for good grades?