This is an interesting idea. Some in the article say we should do it because "it works." however, what goal is being accomplished? Is success measured in results, or by a student's character? In the end, it teaches students to only do something if you get a reward, not because it's simply the right thing to do.
From here:
In Chicago, Duncan discovered that the program affected kids in ways he'd never expected. "I remember going to schools and seeing how excited the kids were when they got their checks. They were like pep rallies — but around academic success!" he says.