Lies are a part of our life. If we are not lying someone else is. Unfortunately, there is a degree of legitimacy which lies do get, especially harmless lies and that keeps the circle going. In all this there is goodness and there are relationships. For goodness to flow transparency and honesty are must. For our kids to be fearless and confident it is important that they live an honest life.
It is their age to develop friendships and relationships, both friendship and relationship thrive on honesty and credibility. Friendships become credible and lifelong if they factor in limitations of each other. This helps in accurately judging capability thus leading to lesser expectation mismatch.
Being honest becomes more tough and is more damaging when it is blunt. Encouraging our kids to be compassionate while being honest helps them believe more in honesty is the best policy.