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When my daughter finished kindergarten this year, each child got their own recognition awards. What I liked about this was that each child felt special, but they were truly being honored for some part of their personality. There were recognition awards for those children that learned the most, those that contributed the most, those that were most helpful, and those that came the furthest in the shortest time. Each award was deserved, so the children felt special for something they knew that they did. That is the right way to give out recognition and special awards at a younger age.
When it comes to older children, not all should get recognition awards if they have not earned them.