One of my kids was very sensitive at age 5 and we had them create a journal of all the things they were thankful for: Good things that happened that day, things they were good at, things they learned that day. That way when they experienced something negative they could see the one thing did not define who they are.
Side note: we also told them bad dreams were just to wake you up so you could go potty. Go potty and look at your journal and you won’t have any more bad dreams that night.
*clinical depression and anxiety require professional help. Do not hesitate to get the help you need*
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