I am fully aware of what goes through your mind as a competitor and as a parent(s), I, too experienced both..
Competing in Local, National or International: psychology as a competitor does't change, only the stage... Since we are not dealing at professional level and the opportunities are with you.. It will be a great experience for all.. And your teachers are well experienced and I am sure they will guide you properly..
As an Instructor and School owner: please do not push everyone to compete in free fighting.. it is not necessary, by pushing them you have a greater chance to lose your hard taught students.. only the ones who wish to compete.. Instructor should only provide those who wish to compete, the attitude of compete here means - losing is alright(although it's bothersome) but we will try better next time.. and do prepare them better..
Suk Jun Kim