At this stage, as your child will grow with time, it is his thinking skills only that will let him make the difference between what is right or wrong. Thinking skills is not merely a single skill; rather it is an amalgamation of different skills that helps your child to make decisions practically and skilfully.
What you need to know
You will often encounter that your child has become more open minded and considers multiple ways of problem solving. Being a parent you must inculcate good thinking habits in your child. You might have noticed him thinking whether to intervene if two children are fighting or not. Well, this is all a part of his thinking skills that are being nurtured during this phase of life.
What you can do
Being a caring parent, you must play logical thinking games or puzzles with him to increase his thinking power. Present before your child a hypothesis, i.e. such a situation where he needs to think about what to do or what not to do. For example, ask your child what he would do if he has x amount of money only and he had to buy two things, or any other similar question. This will portray how excellently your child employs his thinking skills. Looking at the loopholes in his logic, you can help him develop the same.