We have a deal with #2, and my folks have a deal with #1 that if the report card they bring home at the end of the quarter has an A average, they receive a big cash reward. If they bring home a B average, it is a smaller cash reward. C's they get a pat on the back and D's and F's have somewhat negative consequences.
I had one friend tell me that she thought this was unfair that we do not reward C grades. Well, to maintain a C average, there is not much work involved in this. Add to that the fact that both boys have on several occasions tested well above grade level in most of their subjects. They are both extremely capable of maintaining an A average. Based on this, we have the reward system set up for the top two grade averages.
I keep telling the kids that their grades are somewhat like the movie Field of Dreams. If you build it(a good GPA), they (Scholarships for college) will come.