Classroom Economy

I started this system eight years ago during my second year of teaching. Over the years, it has gone through a lot of tweaking and is now at a place that I love. This system is one I can't do without. The kids love it, and so do I. After the initial month of teaching it, the kids take over and the system is run almost entirely by them. It is a great way to provide positive rewards, and adds an extra special element to the classroom.

Here is a general break down of what you need.

1. Classified Ads: This is the fun part! Hand kids a "Classroom Classified Ads" posting all of the available jobs.
2. Job Application: Give kids a taste of life as a job. Make them apply for the jobs they wont. My application is complete with a References Section.
3. A Banking System: I like MyKidsBank.org.  In the past, I have used various paper based forms that required students to do all of the debit and credit calculations by hand. There are benefits to this system, however mykidsbank.org helps to keep track of things much more accurately.
4. A Classroom Currency. I use Scholar Dollars
5. Checks: You can download this for free.
6. Other forms: Fine Tickets, Unpaid Rent Notices, Bank Logs, and Tax Forms.

Benefits of a Classroom Economy:

1. If you spend time in the beginning setting it up, the system runs itself.
2. Provides a very motivating positive behavior management system.
3. Rewards students for working hard.
4. Allows students to take part in a real-world economic simulation. Students learn how to budget their money, balance a checking account and learn how to make payments on rent. Students learn the importance of saving money.
5. Encourages students to go above and beyond expectations.
   

Disadvantages:

1. This does take a lot of time in the beginning of the year to set up.
2. If the system is not taught properaly, there will be problems. There was one year in my teaching where the bankers cheated and the homework checkers were making deals on the side- "I will say you did your homework if you give me $50 Scholar Dollars." My fault entirely, I didn't spend enough time in the beginning teaching them. I just dove right in.