Strengthen Your Family. Learn New Parenting Skills. Improve your Relationships.
Rediscover You! It’s all just the beginning of what’s possible when you join ParentIQ.
Home Resources Courses Articles Tests Forums MyFamilyIQ Shop Login
 
Free Newsletter
Free Newsletter Get our FREE newsletter full of family and parent information!
Parenting and Relationship Tips



The Token Economy - Part I

James Jones, Ph.D.

Token Economy

 

"Youth today loves luxury.  They have bad manners, contempt for authority, no respect for older people, and talk nonsense when they should work.  Young people do not stand up any longer when adults enter the room.  They contradict their parents, guzzle their food, put their feet on the table, and tyrannize their elders."

 

Socrates, indicting the youth of Athens, C. 500 BC

 

What is the "Token Economy"?

 

            The “Token Economy” is based upon the principle that you must earn what you get and you pay for what you use.  It is high moral degeneracy for able-bodied people to be parasites and “con” a living off the hard workers of society.  The belief that we can get “something” for “nothing” is a false and terrible lie.  It leads to disappointment and bankruptcy.  Someone once truly said, “There is no such thing as a ‘free’ lunch.”  Even when “free” lunches are served in schools they are not “free”. Someone must pay for the lunch, even if the child or his parents cannot!

            Children who do not work (but who are given everything that hard work produces) are trained to expect something for nothing and to freeload off of others.  These children fail to develop those character traits that come from hard work: self- respect, independence and integrity.  The Token Economy is a system that both recognizes and proportionately rewards work and effort.  It is a system which puts into practice the Correct Principles of parenting as taught in this program. If the Correct Principles are followed and the Token Economy wisely and skillfully put into practice, it will help parents avoid the Parent Traps mentioned in this program as well as many others not mentioned.

            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 (and employs) the principles of: freedom and accountability, earning and thrift, challenge and reward, struggle and growth, integrity and virtue, duty, responsibility, and much more.  These all come into focus through an intelligently applied program of industry called, “WORK!”  In other words, it is designed to develop skills, confidence and high moral values in those individuals who practice it; AND IT DOES!

 

What is Abraham H. Maslow‘s Theory of Need?

 

Abraham H. Maslow’s pyramid of need hierarchy gives insight into understanding those needs that are most critical and must be satisfied first. The pyramid is self-explanatory, but the following discussion and examples are provided for clarification.

            Level 1 is the first and most primary need category.  Maslow’s theory states that until our physical needs are met we will give our greatest focus, interest and energy to meeting those needs.  Only after we have sufficient food, clothing and shelter are we able to consider our second level of needs.  Needs for personal security (level 2) are pursued immediately after Level 1 needs are met and before we think about meeting the next higher level needs.  The pyramid continues upward in this manner.

            Maslow’s model clearly shows that a person’s focus and energy automatically go to the lowest level of unmet need.  In other words, if John has the chance to spend the evening talking and visiting with friends (level 3, social need) but has lost his job, has no money and is actually hungry because he hasn’t eaten in two days, he will not be interested in idly chatting with friends.  He will, however, be highly motivated to get something to eat.  Therefore, John abandons the pursuit of satisfying level 3, needs because he is hungry, and hunger, a level 1 need, must be satisfied first.  Food is critical for survival, socialization is not.

 

Once a need has been satisfied, does it still motivate?

 

            NO!!  Fulfill every need and there is no motivation to take action to satisfy needs, because there aren’t any.  “No need” equals no motivation to move and that equals no behavior.  Can’t get your kids to work?  If they were hungry or without clothing and shelter they would work, and the hungrier and colder they were, the more willing they would be to work, and they’d be happy for the opportunity!  Being “great” parents and fulfilling your child’s every need is one of the worst and most debilitating things you can do for them.

            Give children everything and you destroy all incentive to work, save, earn, sacrifice, struggle, defer gratification and achieve.  Give them everything and you’ll raise self-centered, selfish, egotistical, ungrateful brats, who develop a sense of entitlement.  They’ll always expect you to keep coming up with some “miracle” to keep them entertained.  We have heard such kids complain, “I’m bored!” and have seen parents jump up and say, “Well, Honey, why don’t we...?”  The spoiled, lazy brat answers, “Been there, done that!  Life is a drag!”

 

Your child needs to need!!

 

            Children “need to need” so that they will aggressively struggle and work!  Children need motivation!  “Need” motivates!  Therefore, depending on their age, require that your children satisfy many of their own level 1 needs by working and earning!  When they do, they’ll be well on their way to satisfying higher levels.  They’ll be happier and develop stronger character and basic skills for adulthood.

 

The curse:  Teenage Retirement!!

 

            By meeting all our children’s needs we have tragically put them on “Teenage Retirement!”  We’ve put them out of work!  If you don’t require your children to work and earn what they get you are robbing them of their opportunity to develop and grow and have self-respect.  You aren’t being a good parent by providing more and more; you are being an irresponsible parent. Even if you had endless resources it would be terribly wrong to give everything to your kids and rob them of the satisfaction of achieving their own financial and emotional independence.  It is a great insult to say, “I will provide everything for you, because you obviously can’t!”  You are really saying, “It is much easier for me to give you everything you need than it is for me to take the time to train you properly!”

 

            We find in actuality that kids learn to manage money much better and faster if they are managing their own hard-earned cash.  It seems to be the nature of some children to spend every penny they earn; they (sadly) must painfully learn the value of saving by not having money when they really need or want something!  The earlier we learn that lesson the better it is for us!

 

Want happier, more capable and appreciative kids?

 

PUT THEM TO WORK!!

 

Want to motivate your child?

 

            Stop providing everything and introduce some real need into his life! You’ll really be amazed what a human being in need is capable of.  He’ll be very unhappy at first but just hang in there and you’ll see a miracle; your kid is very capable.  Once he learns that life isn’t a free ride and starts working, earning, saving, and developing self-esteem and confidence, you’ll see a new person!

 

What about points and their value?

 

            Children earn points for correct behavior.  The number of points available to be earned is determined by the value you give them and how much you are requiring the child to “buy” for himself. Children should be learning to earn and manage their own money and so we must consider how much money the child needs.  Therefore, the number of points given must be calculated and related to the money needs of that particular child.  That of course is determined by age and how far along you are in getting your child financially trained and ultimately independent.  Remember points convert to cash and they also earn privileges.  Therefore, if your child is required to buy most of his own clothes, etc., make sure that your point system converts into almost enough cash for him to buy what he needs (if he works hard and is frugal).

 

This is Part I of an abridged version of the Token Economy chapter from James Jones‘ book, "Let‘s Fix the Kids!" See the Articles section for Part II of this chapter. For more detail about The Token Economy, the Point System, with Charts and instruction about implementation, FamilyIQ has an expanded audio version of this topic. Please call 888-326-5947 x102 for information on how to obtain this material or visit the FamilyIQ Shop at http://www.familyiq.com/shop