For peace of mind, DH told outlandish lies at this age too & he did not turn out to be a pathological liar as an adult. He remembers it well, and seems to have thought of it more like a game & a way to interact/entertain others. In 1st grade he told his teacher that his house had caught on fire the night before & his entire family had jumped off the balcony and into their pool to escape. Apparently he was so convincing that the teacher belied him... turns out it was the plot of a Dallas episode. wink