Children Need To Know They Are Sinners!

The question was recently posed to me as to whether we should use the term "sinner" with children. I understand the sentiment. No one wants to unnecessarily damage our children's self-image. Having said this, unless they understand and believe their dire situation in light of a infinitely holy God, they will never be brought to the place of desperation where they throw themselves upon the mercy of God in Christ. That is, they will never understand their need for the gospel.
Consider this:
Suppose you were standing in a long line at the bank. Suddenly, I grab you, jerk you out of line and drag you out of the building. You probably wouldn’t be happy. You’d say, “What do you think you’re doing? You hurt my arm, tore my shirt, and made me lose my place in line. On top of that, you made me look like a fool in front of everyone”
But, one simple fact would change your attitude to one of complete gratitude: the bank had just been taken over by terrorists. In the first scenario, you didn’t yet know the danger. In the 2nd scenario, you had become aware of the danger and you knew that you were doomed unless rescued.
Before our children can appreciate God’s grace, they need to know that they are justly under His wrath and condemnation--unless someone intervenes.
It's only in understanding their condition, that they celebrate the fact that someone has intervened--the Lord Jesus Christ, who lived the Torah life as our covenant keeping representative and died as our covenant breaking representative, and was raised from the dead for our vindication from judgment (Rom 4:25-5:1).
Yes, our children are sinners and they need to understand this. It serves as the backdrop for the greatest news in the universe: God's purpose to glorify himself in the salvation of sinners through the judgment of the Son of God, our substitute!