I'm going to snitch on my friend that hurt my other friend.
What did your friend do to your other friend?
She has really bad habits like taking money and stealing little things.
It is good of you to stick up for your friend, even if it would harm another friend. You have a good conscience to be able to do that.
I would rather be honest as much as I can than to hide it.
You are doing the right thing here. Stealing is illegal and your friend needs to learn to not do that to anyone.