Child behavior contracts are effective ways to help children develop habits of good behavior.  They are a way to create structure in your home by having the rules and consequences clearly defined.

Child behavior contracts are especially good for children who are having discipline problems at home or school.  A child who has to sign that they understand the rules and understand the consequences may think twice before breaking them, as he or she can no longer say, "I didn't know I couldn't do that."

Child behavior contracts are also good for parents.  When a particular consequence is assigned to a rule violation, it stops the "heat of the moment" consequences that most parents back out of.  Telling your child they are grounded for a month when you have no desire to enforce such a consequence creates a situation where most likely no consequence will be enforced.

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