This is an external reward to set the stage for internally valuing their fitness & learning how to use their body. Nothing wrong with it, as long as there's a plan for internalization. Ideally, they'll be taught those lessons & won't need the ribbons to get them out on the cold days 10 years from now.

(Take with a grain of salt. My only experiences with raising children involve raising myself & my parents over the past 1.5 years.)