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How To Teach Kids To Handle Failure?

Our kids are of a generation that can’t handle losing. At party games, school, and even at friendly neighborhood contests, we see kids bursting into tears because they “did not come first.”
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It is imperative that we prepare our kids to face failure. Here’s how we can do that:
Start appreciating their efforts:
Kids need to know that working hard, understanding things, and giving their best is as important as the outcome of their actions. Understanding the concepts is more important that getting great marks and not knowing the concepts. Participating in sports and activities and giving their best is more important than winning.
Make failure fun:
Yes you read that right. Celebrate failures at home, even more than you would celebrate success.
Talk to them about famous personalities who have failed:
While we do not want to romanticize or glorify failure, do tell them stories of famous people who got rejected (J.K Rowling!), expelled from school (Einstein), and what not, while they continued to work ...
... hard and do what they had to until they found success.
Competing with self over others:
Competing with the world is narrow and limited. Teach your kids to be a better version of themselves.
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So, readers, how would you deal with them?
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