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By overreacting to the clown, the teacher simply plays into his or her game.
Ignoring the problem brings disorder to the classroom. So, what to do? This is a
situation where a good sense of humor -- essential for a career in education --
comes in handy.

With a class clown, you almost always find something deeper going on, and our
job is to figure out what's pushing them that way," says Margie Schwartz,
counselor at Marin Country Day School, a K-8 private school in Corte Madera,
California.

"Often, it's anxiety and stress coming from the home," Schwartz adds. "In
alcoholic families, for instance, kids take on different roles -- be it the
scapegoat, caretaker, or clown -- and if they are being validated in that role,
then they bring it to school, where they suck up all the energy in the class and
deprive others of quality learning time."

Curtailing the Clown

Symptoms:

• Doesn't know when to stop.
  
• Has a smart-aleck response for everything.
  
• May enjoy the attention of being reprimanded.
  
• Actually quite funny at times.
  
• Usually emotionally immature.
  
• Bothers other students with touching and grabbing.
  
• Not really a leader; may actually be a loner.

Teacher Mistakes:

• Feeling that the class clown is out to bug the teacher.
  
• Having two standards of expectations and allowances -- one for the class
  clown and one for other students.
  
• Ignoring the problem.
  
• Issuing threats that can't be carried out.
  
• Isolating the student physically in order to stop the problem.
  
• Failing to realize that his/her humor is not a negative human
  characteristic.

Appropriate Action:

• Don't ignore this student. His or her personality and needs will not allow
  it.
  
• The class clown is often funny, but knowing when to quit is the problem.
  Therefore, signal by hand movement, rather than words, that enough is enough.
  
• In a private conference, use the Time and Place strategy.
  
• Respond with silence. In a powerful way, this response gets the student to
  settle down.
  
• Use the Mature Class technique. Explain that a teacher would like to be able
  to have fun with the class but that a teacher can do this only if the class is
  mature enough to sense the right time and place for humor.
  
• Don't attempt to handle this student with anger, rejection, or sarcasm, and
  don't try to outwit this student. Such attempts will fail.

Source: www.disciplinehelp.com