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I have "Point Clubs" listed on one of my classroom walls. There is a 10 Point Club through a 100+ Point Club. Each student has a frog with their name on it and the frog moves from club to club. Each student has a goal of at least 12 points each marking period.  It's a fun way to keep track of AR points!

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AR is not used for grading purposes at all.

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The only rewards given for meeting AR goals are intrinsic. Nothing feels as good as knowing that you worked hard to accomplish something!!!