> kids that they are being watched

Not sure that "kids" is well defined here. But it seems completely normal that "kids" would be watched by their parents.

I realize that the appropriate nature of "watching" is going to change with the age of the "kid", but oversight and watchfulness by a parent shouldn't be viewed as inherently problematic.

> kids that they are being watched

They already are though. Usually by tech companies without the kid's best interests at heart.

Tailor it to the kid. Certain amounts of anxiety in developing minors around surveillance seem healthy, especially given the risks associated with unfettered access to the dangerous fire-hose that is the internet which itself has tracking at every corner.

Still, lying to your kids is not ok. If you don’t have software on your router that tracks everything they do, don’t pretend that you have. Being surveilled is a feeling that sticks. Being tricked, too. Don’t assume your kids will forget eventually.