Self-esteem refers to how one feels about their self-image and whether they see themselves as a good or bad person. For adolescents, developing self-esteem is important as they work to accept themselves during this stage of personal development. The document provides steps to build self-esteem, such as taking responsibility, learning from mistakes, accepting praise, focusing on strengths to help others, and accepting oneself by recognizing that making some mistakes does not make a person entirely bad if they are having a positive effect on others.