I LOVE this part "If a child says, "I'm gonna fail the exam", you say, "I know you've been paying attention, and you studied. You will do your absolute best!" This will lead their thoughts to "Yeah, I did pay attention, and I did well on my homework," and ease the pressure and stress away from worry."
It really does work, when you respond with all the positive aspects you can change ones feelings and outlook completely. The tricky part is to try and remember to respond this way, for me anyway!
I noticed that once you start seeing it in yourself, you can't help but see it in others :)