streekgeek- im taking a psychology course right now and we just learned about this topic! As much as tangible rewards seem great in the present, the excitement for them dissipate much quicker than the feeling one gets from knowing something like love from a parent or friend is always there. An intanigble reward is a much stronger reinforcer in any situation. But that should not disregard physcial rewards. There should be, but they should not dominate, otherwise you cannot be sure if a child will be doing something just for the reward or mainly because he loves it.
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