I don't swear often in front of my kids, but I *can* sound like a sailor

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When they were little, I told them those words were grown up words (bad words) and not to say them. I never use swear words in everyday conversation so the kids learned that when mom said them, she was REALLY upset. They did go through a stage of saying these no-no words and I just reminded them not to say that. My then 4 yr old son was sent home from pre-school once for singing, "We will, we will fuck you!" to the tune of 'We Will Rock You', by Queen. :p
Around age 12, I began teaching them that using bad words for shock value did nothing to reinforce their arguement, but rather was a rather weak method of trying to make it look like you had a more viable position than you did in your arguement/statement. I taught them that someone who truly had a great arguement would never need to use swear words to convince his opponent.
The adult kids fell into swearing (probably for shock value) about age 16 or so. I allowed it with the boundary that they not use those words towards family members (disrespectful and abusive). There were very few slip ups and the swearing tapered off as they matured.
Most importantly, teach by example. I very rarely swore and would make a big production gasp when someone would swear in a song or on TV. Then I'd look at the kids and in a conspiratorial whisper say, "We don't say that word do we?". They'd want to be part of the 'we' that didn't say swear words, so they'd answer back..."NOPE! Thats a swear word!".
Stormie