words

We are to the point in Isaiah's life where we need to teach him about words and that some words are "nice words" and some are "not nice." He listens so carefully to everything that people around him say. He uses phrases that I know that I say often and even gestures that he's watched people do. I know eventually he'll say some words that are considered "not nice," we just have to figure out what is acceptable now and what isn't.

He was playing with the pegboard at Grandpa and Grandma's house the other day and stringing the pegs onto a string. One peg was being difficult (as he was putting them on the hard way which is tricky) and he says to himself, "Stupid peg." It was so funny that my mom and I had to try really hard not to laugh. I think we just let it slide and I said something like, "That peg is being silly isn't it?" I don't know if making a bigger deal about the word would make him want to say it more or if I should correct him and make him realize that isn't the nicest. Besides "stupid" really isn't a bad word, but is it a bad word for a 3 1/2 year old? What do you think?