I do have a timeout system but I sit beside children and tell them they have done something wrong and talk to them about the problem. I really believe toddlers have the attention span of fruit flies so deal with problems quickly and get everything dealt with quickly. I hold their hands and look them in the eye and talk to them.

I want the children to know that I don't miss a thing, that if they make a mistake they can learn from it, correct it, and apologize and hug and make it better and get over it quickly.