Majority of teachers agree that a perfect student is someone who always shows high interest in activities and subject, performs well, is highly motivated, and is interested in to taking challenging tasks. When educators want to maintain student performance and instill interest, they implement reward extrinsic motivation. This kind of motivation, unlike intrinsic one, includes usage of rewards such as gifts, payments as a way to keep students interested in subjects and motivate them. As opposite to this, intrinsic motivation means studying for its own use – without any additional external incentive. Intrinsic motivation has been criticized for the past years mostly because of negative influence on intrinsic motivation and short effect. A student is highly interested in an activity when there is a motivation by prizes, gifts, money, or grades, as long as the expected reward is received. In case of intrinsic motivation, students have the feelings of competence, pride, and self-determination. But when students receive a reward for their performance, they are interested in the activity for a reward and, soon enough self-determination is decreasing with the desire to perform a certain activity or task. A big number of studies have been confused with the fact how extrinsic motivation influences intrinsic motivation; the results at time have been contradictory. That’s why it is important to see a difference between verbal rewards (positive feedback, praise) and tangible rewards (certificates, candy, money). Tangible rewards were ascertained to have a negative influence on intrinsic motivation and the major negative impact, is that such rewards tend to destroy self-regulation. When students are stimulated with rewards, they do not develop real interest in subject; they become narrowly focused because they are goal oriented. Extrinsic motivation has to be increased sometimes to remain effective. Extrinsic motivation will not have any benefits targeting students as a group considering that it is not possible to use individualistic approach in public system of education. So intrinsic motivation is a costly assignment to engage in along with its negative effect on self-regulation. There is very little doubt that extrinsic motivation does not help in education process. Material awards decrease interest in the subject, and also they are difficult to sustain and implement, result in little self control, and have a short term effect.