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Praising kids for effort is a mistake. That leads to adults who excel in giving the impression of expending great effort without properly planning for success. Praise kids for what you want - achievement.

Like most things in life, there's a middle-ground and a balance between the extremes that isn't easy to figure out. There's no easy answer for such things.

There's a good bookm that reiterates the point in the article. Brain Rules. Worth a read.

It also depends on how strong your kids are. There is no silver bullet

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