How to deal with kids that lie?

I think, you need to talk to them and counsel them till the habit is gone. Also, if you are going to scold them, punish them, chances are they are they are never going to shun this bad habit. First find out the reason why the kid is lying. Are they lying to cover up something wrong they have done, or they are lying for fun. Sometimes, kids lie and cook a story to see your reaction or make you laugh. You can encourage your child not to lie by praising him when he says the truth. What I do with my child is when she says a lie, I tell her that mamma's heart feels very bad when you lie, and I become very sad. And when she sees my sad face, she promises never to make me sad. You can read stories like The boy who cried wolf, which gives a moral lesson that one should not lie. You can just cook story on and off that how one day you met a little boy and he was lying to her mamma, and his mother felt so bad, but you in your heart felt proud because you know your baby doesn't lie to mamma. Also, sometimes we are the ones who leave no choice with children but lying. For example; if milk spills on the table, we would come shouting at the kid or scold him. We should control our anger and should make the child at ease and tell him that it is okay and it happens. So, from next time, if some mistake happens the kid will not hide or lie to save himself. He would know that his parents will understand and he will tell everything as it is.