A token economy involves distributing tokens that can be earned for desirable behaviors and exchanged later for rewards. Research shows token economies effectively reduce undesirable classroom behaviors. The token cycle has four steps: identifying issues, rewarding good behavior with tokens, establishing a plan, and implementing it consistently. Studies demonstrate token economies increase academic achievement more than social rewards alone and can decrease disruptive behaviors in students with conditions like bipolar disorder when combined with self-monitoring. Thorough preparation and execution is key to a successful individualized token economy system.