Token economy is a system that uses tokens to positively reinforce desired behaviors. Individuals earn tokens for good behaviors and can exchange them later for rewards. Tokens act as immediate reinforcement and can include stickers, stars, or fake money. While token economies are flexible and can motivate multiple behaviors, they also require significant preparation, tracking, and structure to implement effectively. The basic components are selecting target behaviors, presenting rules, using tokens as reinforcement, establishing an exchange system, and gradually shifting to a variable reinforcement schedule.