I have to disagree. If points are free, why even have the homework in the first place? To have students pay out the nose for some shitty online homework system? Grades should include homework and classwork constituting what is called Formative Assessment and exams forming what is called Summative or Cumulative Assessment. The idea being Formative Assessment giving you feedback as you are learning and Summative Assessment telling you if you have mastered the material at the end. This is the approach I employ with students earning on average 60 percent of the formative assessment points. Their work does not reflect mastery and the entire point of grading, whether it is used that way or not, is to indicate to students that there is room for improvement. After earning 60% of the points, students adjust so that by the time they get to exams, their work does reflect mastery. Any other way does not show the growth students are capable of. Now, I am not ignorant of the importance students place on grades and how much stress they put on themselves to get top marks (whether that stress is justified or not). So regardless of how I use grades internally in my courses to motivate growth, almost all of my students earn A’s as their external grade. In the end, it’s a win win system. Students maximally grow, and the risk/perception of failure is mitigated. You’ll also notice I always use positive language. I.e. I do not take points off; students earn or I award points. Seems like a small thing, but framing something as a reward rather than a punishment makes a difference.