Part 1 can be found here.
After we used our behavior ladder for a few weeks, I noticed that sometimes I would tell a child to go move up, and they couldn't go anywhere because they were at the top of the chart. I didn't want anyone to miss out on the benefits of good behavior, so I started giving out coupons that said: "'Child's Name', go move yourself up one!" for them to use sometime when they wanted to move up. Then we decided that you could trade in 5 "Move yourself up one" coupons for a "Free Extra Chore" coupon that could be redeemed when someone landed on an extra chore space.
To continue with the learning theme, I looked on the internet and found "play money": scroll down to find the money with the silhouettes. Using some computer program (it may have been a word processing document), I copied the 1's, 5's, 10's, and 20's, copied each of my children's faces (the faces assure there will be no problems with anyone stealing anyone else's family dollars) from a digital photo, pasted each face on all of the different denominations of money, and then printed out and laminated the sheets of "money". These "family dollars" replaced our "move up" coupons. I wanted "play" money because I knew it had numbers on it, and I thought we could work on counting, exchanging, saving vs. spending, limited resources vs. endless wants, etc. (If you don't want to print something out, you could also use 3x5 cards and write numbers in the corners and the child's name in the middle.) Each child is responsible to know where their family dollars are, to encourage learning responsibility/taking care of things that are important to you.
Next, we (the children and I) made a list of different rewards that could be earned by spending family dollars. At various times, our list has contained:
*Cool pencil/pen (found in the dollar section of some store) 3
*Mummy Kit 4
Free Regular Chore 4
*Balsa wood glider 5
Free Extra Chore 5
*Wagon Kit 6
*Fire extinguisher 10
Art pad 15
Set of "artist" colored pencils 15
Plastic candy cane filled with Hershey's kisses 15
Ice Cream (I fill up 2-cup plastic containers with ice cream and keep them in the freezer for this purpose) 15
How to draw a dragon kit 20
A Day Off (of schoolwork) 30
A Date with Mom or Dad (usually involves a trip to a certain pizza place that involves games and tokens, but can also be going out to lunch or to get ice cream from the ice cream place) 30
Remote Controlled Helicopter 50
*These were little things I had picked up for the kids, but I had been saving them until I figured out a good way to use them as motivators.
To come up with the ideas for the prizes (other than the toys I already had), I asked the kids what kinds of things they would like to earn, and then we had a lesson on compromising/negotiating as we decided how many family dollars each thing would be worth.
I keep the prizes on a certain cabinet we call the "prize basket" (because the prizes started out in a basket, and then....overflowed). Something I LOVE about the prize basket is that it gives me a chance to buy things for the kids that they want, that I wouldn't normally buy because I don't want them to think they can have everything they want: I can put those sorts of things in the prize basket and they can earn them! This is especially convenient when you want to reward a certain child for consistent good behavior, but you don't want to listen to complaints about parents playing favorites: the child with good behavior will have the family dollars to buy the prize you picked out for him. My kids have become accustomed to me buying prizes for the prize basket that can only be bought by a certain child; I try to make sure I do that more or less equally among all the children. The prize basket is also a good way to provide children, who generally don't have a lot of real money, with an opportunity to get things for their siblings: I made a rule that prizes are 50% off if they are bought to be a present for someone else (you would think they would have figured out how to milk this system, but they haven't).
What To Do If Your Child Destroys the Chart