From The Mystery of Children by Mike Mason:
Children and stories are inseperable because children live stories. Adults live in their heads, relentlessly analyzing. But children experience life directly. To children life is a story in which they are the main character.
Adults, not content simply to be characters, want to be the author of their story. Being part of the story means surrendering control, but we like to think we can control our world, or at least a good chunk of it. At the very least we'd like to control our children!
Children know (or at least better than adults) that they have little control. They know they're not in control of their story, that they are not the author. To a greater or lesser extent, life simply unfolds for them. Only gradually do they enter into the state of self-realization wherein their actions become more conscious and deliberate.
To be a little child is to believe implicitly in good and evil, in heroes and villains, in the invisible, in miracles and mystery, in princess and dragons, in true love and in happy endings. To be a child is to be caught up in pure story, embracing the events of one's life uncritically because one trusts the Author.