Teaches kids the basics of life - Just like working for a company in the real world, a kid should be rewarded for doing well in school. Getting money is a big priority in any person's life, so why not use it to our advantage. By teaching kids that work equals money, they are getting prepared for the rest of their life. Just because a kid doesn't need to money to live, doesn't mean that he won't be motivated to do well in school for a few dollars. Kids will also now stop asking parents for money. A kid will start to learn how to buy things on his own. Do you really think a kid will "save" money his parents give to him? NO, because it's not his money. But, if he earned the money himself, the kid will start to think about what he did to get the money when he goes to buy chocolate. This though is what will prepare kids for any real life situation.