This is what works for my kids: they earn points all throughout the day for varies things: cleaning up, helping, sharing, having a positive attitude etc... they also receive naughty cards if they are being "naughty". If they are caught doing something extra wonderful, they receive a "Super card" which equals 10 minutes past bedtime, an extra bedtime story etc...
At the end of the week, they add up all their point cards, subtract for any naughty cards they might have received and then based on how many points are left, they choose 1 big item or 2 small items! They love it and it works great!
*** I also have them write sentences for really naughty behavior. They hate it!***
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