Noting that we are raising our children in a morally ambiguous world and we have to do more than just discipline them and hope for the best, this book is a manual for raising children who are emotionally and intellectually capable and confident, by means of play activities that imbue a sense of right and wrong. Each chapter of the manual begins with a straightforward introduction about what parents need to know in order to understand what is important about the character skill being discussed. Each chapter also contains between 15 and 40 character-building activities. Throughout the book, true stories are interspersed to illustrate important points. Part 1 (chapters 1 through 5) describes the five foundations of character including: (1) knowledge and awareness; (2) stability and balance; (3)unconditional love and acceptance; (4) inspiration and modeling and (5) family and community connections. Part 2 (chapters 6 through 12) describes the following character skills: (6) personal potential; (7) social harmony; (8) self-awareness; (9) happiness; (10) sensibility; (11) resourcefulness; and (12) humanity. The first appendix provides a list by chapter of children's books that enhance the development of the skills addressed in the chapter. The second appendix consists of a problem solving worksheet. The third appendix lists by type more than 450 skills, talents, and abilities in children. The final appendix is a listing of special resources of quality toys, play supplies, videos, books and music that enhance children's problem solving skills. (SD)