Once you have oberved the moment, as well as what God has said on the subject, the time comes for reflect. Kids don't reflect as well as adults :). However, it is good to give them a little space to think about the moment so they aren't just listening to a lecture from their parents. Kids can always say what a parent wants to hear, so it is good to give them time to process by themselves.
So, your kid shares something with a friend. You celebrate the good. Point out 2 Corinthians 9:7, God loves a cheerful giver. Have them think about how God loves their generosity or sharing. Why did they share? How did it make them feel? Would they do it again?
Or your child cheated on a test. Point out Psalm 51. God desires truth. Why did they cheat? What did they get out of it? How do they feel about it? Would they do it again?
Reflecting is very important. It helps the truth to sink in and determine the why behind the what. Why is the motivation, the heart issue. Jesus is always concerned about the heart. If you miss the why but get the what, that is legalism. What is the older brother from the prodigal son. Why is the heart of the father. That is the target.