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.

1. TOKEN ECONOMY
SANNET THOMAS
ASST. PROFESSOR, DEPARTMENT OF PSYCHOLOGY
NUCLEUS ARTS AND SCIENCE COLLEGE , PATTAMBI
CONSULTANT PSYCHOLOGIST, ST. RITA’S HOSPITAL , CHERTHALA

2. Contents
 Define Token Economy
 Advantages
 Disadvantages
 11 Basic Rules
 Steps

3. What is Token Economy ?
 It is the system of exchange in which the individual earns tokens as,
reinforces and exchanges them for tangible and social reinforces.
 Token program involves distribution of tokens
 Tokens can be stickers, stars, smiley, face, fake money etc.
 Tokens can be accumulated throughout the day and exchanged at a later
time

4. Advantages of Token Economy
 Tokens are flexible
 Tokens can be used for several needs
 There is no delay giving tokens after the desired behaviour has been
shown
 It does not matter who gives the tokens
 It can be consistently applied by multiple teachers/dotors/supervisor in
multiple settings
 Prevent boredom

5. Disadvantages
 Takes a lot of preparation and tracking of the behaviour, tokens, and
rewards
 Not everyone will respond to token system
 Once the system is implemented in one setup, it may not followed through
 Parental/guardian follow through does not always occur
 Can lead to dependency
 Maybe easily abused
 Can be expensive
 Require organization and structure

6. 11 Basic Rules
1. Select the target behaviour
2. Present the target behaviour
3. Post the rules and review it frequently
4. Select a token
5. Establish reinforcers which the tokens can be exchanged
6. Develop a reward menu
7. Implement token economy
8. Provide immediate reinforcement for acceptable behaviour
9. Gradually change from continuous to variable schedule of reinforcers
10. Provide time for client to exchange tokens
11. Revise the reward menu frequently

7. Steps/Components
Child has no tokens and
no access to desired items
& activities
Child exhibits the desired
behaviours
Child is provide tokens for
engaging in the desired
behaviours
Child exchanges the tokens
for access to desirable items
or activities

8. Reference
 Schultz D & Schultz E (2003) Theories of personality, (10th ed)
Wadsworth cenage learning,USA