The punishment would depend on the offense. Stuff like getting poor grades would result in the banning of whatever entertainment they've been putting ahead of homework/studying. Being disobedient would likely incur a reduction in allowance (amount depending on how bad they were).

Limiting their funds would be pretty impactful I think because my plan for parenting is to never buy the child anything aside from birthday and Christmas presents. Most parents also buy stuff for their kids randomly throughout the year (especially if they've been good), but I wouldn't do that. I want my hypothetically children understanding the value of money early on. They would hafta do chores and get paid weekly based on their work (as if they were employed). They then hafta buy all their own stuff. They'll end up learning stuff like money management when they can't get any of the things they want... perhaps learning to save money and whatnot. I see too many parents with whiny kids begging for every item in the store and having absolutely no concept of the fact that each product costs money and money isn't infinite. Let these kids do their own shopping and maybe they'll understand what a $40 product actually means and understand the concept of "I can't afford this."

I know that was a mega tangent... but I figured I need to explain more on my philosophy with giving children money to understand why I'd cut off the money and not take away their current possessions.

I think I would be one of the world's nicest parents. 
I don't generally feel the need to hand out punishment... If something is done wrong, I would give a child a small scolding, and then move on. The punishment would intensify if the offense repeated itself. I don't want to let the fact of punishing a child take my mind away from more important things- for example, making enough money to support the child I'm thinking of punishing.
Do you see what I mean?

The punishment would depend on the crime he or she has did. Say if he beat up somebody at school the punishment for that will be that he have to clean up the whole entire house or something like that.

JSHF : It would really depend on what the kid did. I am not a father but I am an uncle. There have been times where I have had to put my foot down with my nieces and nephews. It’s not something that I consider to be enjoyable especially considering that my nieces and nephews think that I am strict.

I’m not really strict but I do know that discipline can sometimes take a back seat with these kids. By discipline I am not talking about slapping or anything like that (Though it was good for me and my sisters when we were kids.) but I’m talking more like structure and following of rules and such.

It isn’t easy sometimes when you set some ground rules and because the kids haven’t really had to follow rules much, they don’t really comprehend things and then you’re not sure how to deal with it. If we’re talking mere misbehavior and not the kids actually doing something severe well, I would take away TV privileges as a starter but now of days with so much technology I think it may also be wise to take away internet access as well.

When I was a kid the main things that use to be withheld from me whenever I was out of line would be the VCR (I love recording and recorded tapes and such. Now I record DVDS.) and or, any gaming console that I had at the time. It obviously wasn’t fun but it worked. I just wish I had similar discipline in my teen years, That was the time I really needed it. I can honestly say now that I wish I had discipline back then. Unfortunately for me, like most teenagers I was set in my ways and thought I knew it all and was resistant to most pleas of good advice or wake up calls that I didn’t really get until I was much older.

This is one of those things where there really isn’t a right or wrong answer as long as there isn’t abuse obviously. The one thing that I hope for is that my nieces and nephews avoid the mistakes I made as a teen and by doing so I hope it will make it easier on them than it has been for me.

I have to agree with several things in the posts above, but it made me think of something I should have mentioned earlier:  a punishment without a reason given is SUPER important!!!   Whenever or however I punish my kids, I will first ask them why they think they are being punished.  If they respond that they don't know, I will instruct them to think about it -during- the punishment, and we will discuss it afterwards.

A child needs to not only know the reason FOR the punishment but the reason why what they did was wrong.  I can't just punish a child for stealing candy and then state that the reason for the consequence is that "Stealing is bad."  I should be able to patiently and meaningfully tell him WHY it is bad.

Hmm, I don't know if it would be different if I ever were able to have children. I don't know if I would feel comfortable spanking them. Maybe ground them and take their privileges away for awhile. If that didn't work, I would talk to them and explain to them that what they did was wrong.