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See bottom of post for update on "stealing".
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I haven't read the other responses yet, so I fear that I might say the same thing... Well, here goes anyways.
His lying, although a bad thing, might have a very sensitive motive behind it. He might be feeling sensitive, embarrassed, shameful, frustrated, confused, hopeless over some trouble he's having with learning & school work. Whether the problem be that he is unable to focus at his Dad's house, or he's unable to use the self control necessary to follow through, or he just might just be falling behind in comprehending the school work. Any / All of those sorts of things can tie a kid up in knots inside.
Perhaps, a good idea WOULD be to have him move home with you but rather than put him in daycare for an hour, could you put him in Silvan (Sulvan?) Learning Center for some tutoring. The tutors might cue into the issues about whether or not it's a study habit problem, an attention problem, a learning problem, or a power struggle problem. Even if he does stay with his Dad, the Learning Center might still be a good idea.
I, personally, was hardly ever able to be the one who held my daughter accountable for homework. When I tried to help her, she would do silly stuff like chew on her pencil and then mistakenly flick it across the room, drop it, have to go potty (whatever), a million excuses... it would drive me bonkers. I'd keep my mouth shut, but my blood pressure and anxiety seriously concerned me. We would spend 30 minutes on homework, and 2.5 hours on fussing over broken pencils. And I was extremely patient with her silliness sharpening new pencils, waiting during potty breaks, and tolerating her yelling at me in frustration with a sarcastic tempermental tone of voice. Something I learned from that experience was that I needed to just be Mommy and let the tutor be the tutor, let Grandma be the Grandma, let the teacher be the teacher. I couldn't be all things to her and she wouldn't let me. The foolishness stopped when I allowed others to help her. She just didn't try to push buttons with them and she was too embarrassed and self conscious to ACT A FOOL with them.
So, I hope my suggestion for tutoring helps as well as my personal experience. Keep us updated.
YM
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I re-read my response at a later time and just wanted to update it because I totally missed the stealing part.
He's stealing books from the book fare??? What the heck kind of stealing is this??? :P
The issue of shame came to my mind on both of these behaviors. Lying comes from shame and stealing causes torturing shame. But, the emotions and exiliration of stealing can also be a high. Good - ness, I hope he isn't getting himself into that kind of yo, yo, cycle.
Even on this issue, I would come up with some solutions to help him with "shame" issues. He must just feel terrible about himself (which will most likely come across with defensiveness and outragious emotional anger) having done some stealing already. Although it might seem like a thing to punish him over and maybe even lecture him over by saying stuff like "Stealing is wrong. Don't you know that?, Why are you do ing this? You should know better?" All of that typical parental response is in effect very shaming in and of itself.
Here's and idea: Could you demonstrate automatic forgiveness of such terrible offenses? And just step aside... then, bless him with an activity that will build his self esteem. He doesn't even need to make the connection at all. It could work like, "Oh, Dad just told me that you stole his blankity blank. That's something that Dad is going to be ready to talk to you about when you go back home. Now, here's a pamphlet about the YMCA. I just want you to know that I have $45.00 to put toward, karate, basket ball practice with a coach, fencing, or swimming lessons... which one do you want to do. It's my valentine's day present for you." He'll probably say, "Just give me the money Mom." because he wants to spend it on Poke'mon cards. But, you can reserve the "gift givers right" to give the gift that makes YOU feel good to give.
What do you think of my theory?
Take what you like and leave the rest.
Keep us updated... I'll check back again.