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Children’s Lies Are a Sign of Cognitive Progress

Research shows that kids’ ability to bend the truth is a developmental milestone, much like walking and talkingChildren's Lies Are a Sign of Cognitive Progress - WSJ

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"Lying requires two ingredients. Children need to understand what’s in someone else’s mind—to know what they know and what they don’t know. We call this ability theory of mind. The children who are better at theory of mind are also better at lying.” 

The second requirement, according to Dr. Lee, is executive function—the power to plan ahead and curb unwanted actions. “The 30% of the under-3s who can lie have higher executive function abilities,” he said, “specifically the ability to inhibit the urge to tell the truth and to switch to lying.”

I guess it's good when they CAN lie, but they should still be encouraged NOT to lie. 

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