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Token economy

A reward system where a person earns tokens, like stars or points, for target behaviors and trades them for chosen rewards.

What It Means

A token economy is a reward system in which a person earns tokens, such as stars, chips or points, for specific target behaviors, then trades them for rewards they've chosen from a menu. Behavior analysts call those rewards backup reinforcers, because they are what give the tokens their value. It's used in schools, therapy programs and homes, and a sticker chartSticker chartA chart where a young child earns a sticker right after each target behavior, with stickers adding up to small and larger rewards. See more is its simplest home version.

Try It: Price a Token Reward Menu

Set how many tokens your child can earn a day and pick a reward from the example menu.

Tokens in a full week28
Days to earn this reward4
Times a week it's affordable1

The bar fills as the wait nears two weeks.

How Parents Say It

  • "You've got 12 tokens. Want to save or spend?"
  • "That's a star for starting homework on time."
  • "His therapist set up a token board at school."

The Breakdown

Worked example. A 7-year-old can earn up to 4 tokens a day: one for starting homework by 4 p.m., one for clearing their plate, and two for being in bed by 8. The family's menu:

RewardPriceDays of full effort to earn it
Extra storyUser storyA short description of something a product should do, written from the point of view of the person who needs it, often in the form "As a, I want, so that." See more or game5 tokens2
Pick Friday's dinner15 tokens4
Outing with a parent40 tokens1010,000 stepsA popular daily step goal that began as the name of a 1960s Japanese pedometer; later studies find health benefits begin well below it. See more

The tokens and prices are examples. A cheap item keeps trades frequent, and a pricier one gives a reason to save.

The parts, per the behavior analysis research

  • Target behaviors, stated clearly.
  • Tokens, which only gain value because they can be traded.
  • Backup rewards, chosen with the child and listed on a menu.
  • Exchange rules for when and how tokens are traded.

By age. HealthyChildren.org (AAP) says tokens such as paper stars tend to work better for early school-age children, while points and contract systems suit older kids. For 2- to 4-year-olds, CDC's reward charts use stickers given right after the behavior.

What your result means. If a reward takes more than a week of full effort, keep a cheaper item on the menu too. HealthyChildren.org suggests small rewards at the end of each day or week and larger ones for longer stretches.

Where It Comes From

The token economy comes from behavior analysis. A 2018 article in Behavior Analysis in Practice notes that researchers Ayllon and Azrin first described one in 1965, with hospital residents who earned tokens for tasks like grooming and laundry and traded them for activities.

Good to Know

HealthyChildren.org (AAP) advises letting your child help choose the rewards, avoiding penalties and demerits because they can humiliate a child or discourage trying, and phasing the system out once your child forgets to ask for tokens. CDC adds that rewards already earned are the child's to keep. If a token system is part of a therapy plan, follow the plan your child's therapist or school sets.

FAQ

What is a token economy in simple terms?

A system where a child earns tokens, like stars or points, for specific behaviors and trades them for rewards picked from a menu. A sticker chart is a basic version.

What's the difference between a token economy and a sticker chart?

A sticker chart usually builds toward one or two set rewards. A token economy adds a menu of rewards at different prices and rules for trading, so the child chooses what to spend tokens on.

Should I take tokens away for bad behavior?

HealthyChildren.org advises avoiding penalties and demerits, and CDC says rewards your child has earned shouldn't be taken away for misbehavior.

Do It in Buhata

Household Rewards

Set up the target behaviors as chores in Household Rewards in Buhata, counted in tokens, and write the reward menu with its prices in Household Notes so everyone uses the same one.

Open Buhata

Related Terms and Categories

  • Sticker chart

    A chart where a young child earns a sticker right after each target behavior, with stickers adding up to small and larger rewards.

  • Descriptive praise

    Praise that names exactly what the child did well, such as "You put every block back in the bin," in place of a general "Good job."

  • Chore money

    Money a child earns for jobs around the house, often paid for extra work beyond the chores everyone in the family is expected to do.

  • Allowance

    A set amount of money a child gets on a regular schedule to manage, often with an agreement about what it has to cover.

Parenting and child development

Sources

Joseph H. Cihon and others, "A Preliminary Evaluation of a Token System with a Flexible Earning Requirement," Behavior Analysis in Practice, 2018 (PubMed Central); HealthyChildren.org (AAP), "Positive Reinforcement Through Rewards"; CDC, "Tips for Using Rewards," Essentials for Parenting Toddlers

Last updated .