In the pathway of discouragement, there are two significant indicators that things have gone awry. First, there is an escalating "disconnect" among the adults who are involved in the life of the young person. Second, the problem solving gives way to discouragement, anger, and punitive consequences. For some children the trajectory lasts over his or her school lifetime. Understanding the negative trajectory provides insight on how the pathway to discouragement can become a pathway to courage. What all children need in order to experience what they call the Circle of Courage are environments of belonging, mastery, independence, and generosity. To create these environments of courage even in the shadow of problems, efforts are focused on helping kids feel a sense of attachment (belonging), competence (mastery), power (independence), and worth (generosity). The authors describe the specific adult attitudes and actions that are essential in redirecting children and youth from destructive to productive life pathways.