Supt Chris Singer paid tribute to nine-year-old Luke Johnson and Liam Elliott from Roselands Primary School.
The pair discovered a sum of money as they made their way to school earlier this month.
They alerted their teaching assistant and later handed in their find to Paignton Police Station where they were presented with an on-the-spot reward ticket by grateful officers.
Just over a week after their good deed, the duo were presented with a certificate and capital bond voucher by Supt Singer and PC Ruth Le Messurier, Torbay Police's youth intervention officer.
Supt Singer said: "This is a real demonstration of how responsible young people really are. We should rightly recognise this and the contribution they make to Torbay."
Roselands headteacher Debbie Main said: "I am extremely proud of the two boys and how this exemplary behaviour showed great citizenship. They are a role model to us all."
So far 35 reward tickets have been issued by Bay police as part of their scheme aimed at encouraging good works and behaviour in the community.
Ticket-earning exploits have included raising money for charity, helping to build a drop-in centre, handing in a lost dog and passing on useful information to police.