Communicating with Toddlers
As your toddler develops his skills in speech & co-ordination, unfortunately the understanding of right & wrong won't usually be well developed until around 6 years of age. Use the instances where your child is lying, stealing or cheating as opportunities to teach them the difference between right & wrong. These situations are part of every child's development & are most common in preschool children where fantasy land is alive & well. If these are isolated incidences, you don't have too much to worry about. But if they are more of a habit, then you may need to seek professional advice to work out why it is happening.
Be sure to set a good example, so that it will be easier for your child to learn right from wrong behaviors. It is important that you explain to your child the reasons why certain behaviors & actions aren't allowed. You may think that having to explain things to a 2 year old is pointless but it won't be long before they do understand what you are saying & by then you will be in the habit of explaining your reasons & on the path to open & effective communication with your child.