The next step is to give grants to children who do well at school.  It is what happens in France, so much if you finish junior high (aged 15)  with a "bien" good grade and more if you get "trés bien" grade.  
And for senor high school kids who matriculate, the same system only with more money and extra help with university housing costs.
I have always found that money is a very good way to motivate teenagers -- probably more so than giving it to parents to spend on smokes and drink.