Your child is ready to take up responsibilities appropriate to his/her age and make their own judgement. You can help them to develop this by slowly allowing them to decide about what they wear or eat, own certain chores and take responsibilities for their actions, while providing healthy, decent options for them to choose from.
What you need to know
Everybody agrees that practice makes us perfect. So learning to judge, taking up responsibilities at a young age help a kid to grow into a responsible adult. For your 7-8 year old, you can allow them to take decisions on what hairstyle they would like to have, clothes they want to wear, kind of games/sports they want to engage in, how to spend their leisure time, bringing home their friends or going over to their house for playing – all within the limits of parents or other elders’ supervision.
But this does not mean they have a free hand in what they want, as a parent you have to give them healthy, reasonable choices for them to decide on. When you take any decisions for them, explain the reasons for you to do so, so they would understand why it is done and how it is going to make it right.