Do Grades Determine Success?

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Parents and kids share several concerns when it comes to the future (and particularly, future potential success). Every semester the ritual is the same when grades are reported. Some don't ever have to worry, the report cards are full of A's, and others hide them under the bed. The situation begs the following questions:

How important are grades for determining success? Are grades important in life?

Grades are often touted as the single most important factor when determining college admissions, job applications, and future success. The following is one of the single most asserted facts of life: 

Good grades grant entrance to an elite academic college. Academic success at a top university guarantees a well paying, highly respected job. Well paying jobs grant the necessary outcomes of success, including a big house, exotic vacations, societal status, large bank accounts, and many more luxuries of life.

Examining this assumption will elucidate the issue of "grades determining success".