Being the ultimate example
1 Tim 1:16: "But God had mercy on me so that Christ Jesus could use me as a prime example of his great patience with even the worst sinners. Then others will realize that they, too, can believe in him and receive eternal life" (NLT).
Kids learn some of the most important lessons by watching the most influential people in their lives - their parents. They learn by watching your example, in good times and bad. And, in the bad times, when you act with anger, ridicule, condescension, selfishness, etc, you have an extra opportunity to model the humility that results from confession and repentance, and the mercy and grace that comes from being a child of God.
As your children grow, they will see you are not perfect. Hopefully, they will seek the source of perfection in the only place it can be found, God. You show them the way by demonstrating your response to imperfections - present them to God with a grateful heart, knowing His mercy and grace wipe the slate clean. What an opportunity to communicate the Gospel message to your kids in a practical, real life manner!
Be an example of God's patience, mercy and grace; your kids are watching.