I don't think I have ever used a time out. We use a "why don't you go find something else to do since you are _______" kind of a method instead.

We are a play-based child care so although our day is very routine, it isn't strict or structured. My DCK's all play in groups of 2 or 3 while I interact/facilitate/supervise them. We also do several large group acitivites that involve everyone at the same time. If anyone is exhibiting a negative or bad behavior, they are asked to go find something else to do.

So far (20 years) it seems to work great for me. I very rarely have repeat offenders (at least they don't repeat the same "negative behaviors") and generally I have been fortunate enough to have some pretty great kids and very involved/supportive families.

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