Valuable items are often remembered better than less valuable items, but research on the mechanisms supporting this value effect is limited. In the current study, we sought to determine how items might be differentially encoded based on their value. In Experiment 1, participants studied words associated with point-values which were followed by a cue to either "Remember" the word for a later test or "Forget" the word. While to-beforgotten words were recognized at a lower rate than to-be-remembered words, there was a significant effect of value for to-be-forgotten words when the "Forget" cue was presented immediately after the word, suggesting a relatively automatic enhancement of encoding by value. In Experiment 2, we examined to what extent subjects engage in more effective encoding strategies for high-value items. Subjects studied a list of words with different point-values, and were instructed either to construct a mental image of the item, use rote rehearsal to learn the items, or were not given any study strategy. There were significant effects of value for items that were studied under rote rehearsal or when no strategy instruction was given. However, effects of value were nearly eliminated when subjects used a mental imagery strategy for all items as this strategy boosted memory for low-value items. In Experiment 3, we sought to replicate Experiment 2 with a different deep encoding manipulation. Subjects were instructed to generate and say aloud a sentence containing each item. Consistent with Experiment 2, this 6 7 8 9 FORGET ME NOT 3 manipulation eliminated the effects of value on recognition memory. Thus, it appears that subjects engage in more effective encoding strategies for highvalue words because the benefit of value was substantially reduced when subjects were instructed to use deep encoding strategies. Together, these results suggest that valuable items are encoded more effectively due to both automatic and strategic mechanisms.