Our Token Economy.

I was introduced to Token Economy when I was younger.  My Aunt & Uncle used the system in their home with their children. I remember thinking how cool it was for my cousins to be able to work and be rewarded for behavior, chores, good deeds, acts of kindness and other special recognition moments in the home.  It was fun to watch them save their tokens to earn things that they wanted. 
When Kevin and I got married, our financial understandings and ways of spending/saving were as opposite as Antarctica and The Zahara desert.  Kevin, being in his career, having to pay his own way for everything since he graduated high school and trying to save for his future, lived a very foreign concept view of finances compared to my, "I'm single, Ready to mingle, Let the change in my purse jingle" attitude.  It took awhile for us to come to an understanding of each others ways, but when we finally had our budget, spending, and saving plan in order, we both knew we wanted to teach our children the concept of saving, and working for things they wanted.  My aunt gave me a few printed pages from her collection from "Lets Fix The Kids" by James J. Jones and since our son was 2, he is now 4, we have applied a Token Economy system in our home. As he has grown, we've added another sibling and as their needs/wants/behaviors have changed, we have made adjustments to our system.  So....
What is Token Economy?  The Token Economy is based upon the principle that you must earn what you get and pay for what you use (or want in our system).  The Token Economy is a system that rewards work, and requires "something" for "something"and does not give "something" for "nothing".  Value for Value!  It is based upon the principles of: freedom and accountability, earning and thrift, challenge and reward, struggle and growth, integrity and virtue, duty, responsibility and so much more.  It is designed to develop skills, confidence and high moral values. It is a system for delivering positive reinforcement to children for engaging in good behavior or completing tasks. 
One of my favorite parts of Token Economy is that it is a completely customizable program that you and your family can build and adjust specifically to the needs of your children and your financial means. Some families use Token Economy for children with behavioral issues, autism or other learning disabilities. The Token Economy idea is also a popular system for classrooms. 
Why Token Economy?  Each of us acts or moves (behaves) to satisfy our needs (real or imagined). The more severe the need, the stronger we are motivated to satisfy that need.  Children "need to need" so that they will aggressively struggle and work! Children need motivation.  Children need opportunity, development and self-respect.  Token Economy teaches children to earn and save money, appreciate THINGS they have, listen, obey and counsel with their parents. Clean their bedrooms and bathrooms, toys etc. and WORK! 
Our Token Economy System. At ages 2 and 4, we aren't arguing with our kids (yet) about the newest iPhone, or $100 pair of jeans and shoes, so our system is geared towards teaching our children to help participate in household chores, kindness to each other and obedience to mom and dad. Our system also allows the children to recognize that if they WANT things, above and beyond what we would already provide for them; mostly toys at this age, they must work for them. And let me tell you, for a 2 and 4 year old it is WORK to be kind to your sibling.

Our Token Economy is paid in poker chips. Each poker chip has a different monetary value and each chore, good behavior or exceptional act of kindness etc. has it's own reward value.  We have 4 colored tokens. White is worth $.25 Blue is worth $.50 Green is worth $1  Red is worth $5
When a child completes a chore, does an unexpected kind act or goes above and beyond what has been asked, they are rewarded a token with a value that matches the work. Hunter has a weekly responsibility that he can automatically earn $1 for. If he takes out the trash from each room, the night before the garbage man comes, he automatically gets $1. Hayden is learning to take over this chore as Hunter is getting older and he can have a bigger chore responsibility.  Learning to make their beds, getting dressed themselves, picking up toys/books also earns them tokens.  Because our children are in a "learning" stage, we are rewarding them for simple tasks and behaviors when we notice them done without being asked or done extra well.  They do not get tokens EVERYTIME the make their beds or pick up their things. 
Some other ideas for rewarding tokens are: (For ages 2-4) -Unloading the dishwasher (plastics, silverware) -Setting the table -Putting away laundry -Dusting Baseboards -Helping dad in the yard -Helping a sibling with a problem -Being kind to a neighbor or friend -Using kind language  -Doing well in preschool/primary/nursery -Being helpful/behaved at a store

A lot of families who use Token Economy use it for behavioral purposes. I will say that our kids LOSE more Tokens when it comes to behavior.  Maybe I expect my children to behave better... but especially their behaviors towards their father and I, siblings, and when we're in public, account for a lot of tokens being revoked. I will say something like, "That is going to cost you a GREEN token if you continue to act that way" and the children are either quick to straighten up or completely lose it.  This is the only time I take away tokens and I limit my take aways to a couple of tokens a week before moving on to more severe consequences (this obviously depends on the behavior as well).  I want my children to find the value in the work they do to earn their tokens and if I was to take away everything each time I do not think the message would be clear to them at this age.
Cashing in our Tokens.

One of my favorite parts of our Token Economy is when the children are able to "cash in". Usually once a month we remind the children they have tokens they can use for a special treat or toy and then count out their earnings, combine smaller values for larger value tokens and put cash in their banks. If the children have a special toy they have been working to get, we will give the children the money so when we go to the store they can hand the cashier the payment.  There is such a sense of pride and excitement when they get to have real money. The token values are usually spent when we are out and about and a child wants a cookie or a small toy from the dollar section. These unexpected wants allows for us to have a quick conversation to decide if they have the money for it. With Hayden it's a matter of "do you have any tokens for that?"  To which she ALWAYS replies "YES". Later at home, I remind her how many tokens it cost her and be sure to have her get those out of her bank and turn them in. She's great with colors and counting up. For Hunter it is a deeper learning process.  We are able to tell him how much it costs, remind him how many tokens he has, ask him if he has the tokens and then when we get home we're able to count out tokens and use subtraction to make sure mom or dad gets paid.  It's been so neat to see the kiddos learn "add" and "take away" with Token Economy.  We have also used our Token Economy for when we are taking family trips, like our most recent one to Disneyland, to encourage our children to work "harder" or be "nicer" to earn EXTRA tokens for souvenirs they will want. 

Get Started. There are so many ways to approach a Token Economy system so be sure to check out  1000 Ideas about Token Economy over on Pinterest and get inspired.  Step 1 - Make a Plan and Prepare. -Sit down with your spouse and write out exactly what chores/behaviors you feel are appropriate for your children.  -Discuss how you will hand out tokens, how often and for what chore/behavior will they be rewarded.  -Put together your banking system. (Tokens, fuzz balls, sticker charts) Whatever you feel your children will be most excited about.  -Decide how often you will 'go to the bank'. Making a weekly or monthly "cash out" day will keep things consistent and keep the children motivated and not allow for their tokens to be forgotten. -Make visuals. In our home we have our banks to store our tokens in since the children are given their tokens immediately after the completed chore or good behavior is recognized, however some parents like to make charts for the children's chores or with smiley and frown faces for behaviors. They use these and put stickers on them and then give out tokens at the end of the week/day.  Again, everything is customizable so DO WHAT is best for your kids! 
Step 2- Put Your Plan Into Action. -Teach and explain the children about their Token Economy. You can even give the system your own name like "Fords Finances" or "Family Funds" any fun or catchy name your family can refer to.  -Start handing out tokens right away. Allow for the children, especially the little ones to really understand that they can be "rewarded" for their behavior and work.  -Use "Token Economy" language.  "Thank you!" "I'm so proud of you" "I noticed that you..." "Because you did this...." "I think that deserves a token!" "Is that a good choice or a bad choice?" 
Step 3. Be Patient and Consistent.  Having a Token Economy system in our home has been a huge blessing. We have been able to see our children develop skills and behaviors that we are proud of. Remember!  They are still little and learning, so let it be a huge part of our patience and desire for consistency with your program.  Not everyday is perfect.  There are times the children are mean to each other, mean to you, cry, yell, make tornado disasters of toys, clothes and books all over the house, however, the skills you are teaching them will be rewarded with a child/teenager and adult who has self respect, integrity and understands the value of work. The love, attention and communication you have with your child will all be worth it. 

We'd love to hear if you have a system set up in your home or if this post encourages you to start!