Encouraging Both Creativity and Honesty

We have reached an age where my darling little angel has started telling stories.  This can be tricky because I am trying to promote both creativity and honesty.  For example, she started school this week and she was telling me about her new teacher’s reward system.

“When we our class gets compliments, we get a class reward.” she told me.
“Oh, really?” I asked.
“Yeah,” she said, “like if we get five compliments then our teacher takes us all out to a restaurant for lunch.  We all have to crowd into her car, but it’s fun.  In fact, we got five compliments yesterday so we all got to go!”
“Really?” I asked.  “What restaurant did she take you to?”
“Well, I don’t remember the name.” she replied.
“Hmmm, what kind of food was it?” I prodded.
“Tex-Mex” she answered, without a hint of hesitation.  “She took us all out for Tex-Mex.  It was delicious.”
So, I was fairly certain her teacher had not in fact loaded the whole class into her car for Tex-Mex.  But I approached this carefully.
“You know sweetie, I love it when you are creative.  But it is very important to make sure you tell people when you are being creative and making up a story.  Now, are you being creative and making up a story?” I asked carefully.
“Oh, I forgot to tell you.  Yes, I’m making up a story.” she answered happily.