Children when infants we tell them stories about fictional characters... To scare them to sleep most of us would bring a fake monster character to life. The child does believe in each and every bit of this. And when he grows he starts believing that this is the normal course of doing or may b getting things done. Now all of a sudden we parents expect them not to lie, or build up stories.. Its not that they are lying.. But just that they are going by the way we have brought them up.