I don't personally have children, but I believe that once they know right from wrong they should be punished for wrongs. If you let it slide by then they will learn that it is "ok" to do wrong things and you will understand. They have to learn you will always love them right or wrong but that for every wrong choice a punishment must be made. You have to establish trust and understanding as well. I'm not sure where your beliefs lie, but God corrected us of our wrongs (sins) and He will continue to do so as a way for us to learn. We are His children and He loves us, just because there is punishment, does not mean He loves us any less. I hope this helps.