There are many benefits to children learning sportsmanship. Children who don't know how to behave respectfully during a sport or game will likely carry that on into other areas. Children who taunt other children in a game will likely act the same way in other situations.
Bullying can be a serious issue, so if children don't learn how to respect others in sports, they may not be able to in other social situations. Conversely, children who learn good sportsmanship will likely demonstrate respect in other areas of their lives, such as at home and in the classroom.
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Another benefit to sportsmanship is that children learn how to enjoy the game. If the focus is solely on winning, then the fun of the game is taken away. Too often children forget that the goal may be to win but the way to get there is through having fun. Enjoyment is quickly taken away when sportsmanship is lacking.
Children will sometimes find their value wrapped up in their performance. If they understand that win or lose, they are still valuable; they will have greater confidence and self-esteem. Children who learn sportsmanship are better able to take pride in what they have accomplished. They realize the importance of improving and honing their skills, rather than trying to win at all costs.