THE TOKEN ECONOMY SYSTEM IS ONE IN WHICH APPROPRIATE BEHAVIOR IS REWARDED WITH TOKENS, WHICH MAY BE EXCHANGED FOR SPECIFIED PRIVILEGES. INAPPROPRIATE BEHAVIOR IS PUNISHED BY THE FINING OF TOKENS, BY THE REINFORCEMENT OF AN INCOMPATIBLE, DESIRABLE BEHAVIOR AND/OR BY EXTINCTION OF THE INAPPROPRIATE BEHAVIOR. THE TOKEN ECONOMY IS AN INTEGRAL PART OF THE TEACHING-FAMILY PROGRAM MODEL AS IMPLEMENTED BY THE LENTARA CHILDREN'S HOME AT CHELTENHAM, SOUTH AUSTRALIA. THE LENTARA FACILITY HOUSES SIX ADOLESCENT BOYS UNDER THE SUPERVISION OF TRAINED PARENT-TEACHERS. TOKENS TAKE THE FORM OF POINTS GIVEN FOR APPROPRIATE BEHAVIORS AND TAKEN AWAY FOR INAPPROPRIATE BEHAVIORS. THE TOKENS MAY BE USED TO PURCHASE SUCH PRIVILEGES AS SNACKS, WATCHING TELEVISION, AND TAKING PART IN OUTSIDE ACTIVITIES AFTER SCHOOL. THE STUDY SUBJECTS ARE A 14-YEAR-OLD REFERRED FROM AN INSTITUTION FOR DELINQUENT BOYS AND A 13-YEAR-OLD REFERRED BY HIS PARENTS. OBSERVATION OF THE BOYS' PERFORMANCE OF CERTAIN TASKS WITH AND WITHOUT THE POINT SYSTEM SUGGESTS THAT THE TOKEN ECONOMY IS AN EFFECTIVE MEANS OF TREATING BEHAVIOR PROBLEMS IN DELINQUENT AND PREDELINQUENT YOUTHS. METHODOLOGICAL DETAILS AND A LIST OF REFERENCES ARE INCLUDED.