Parents who urge children not to believe everything they hear need not worry: Children as young as four are able to distinguish fantasy from reality using context clues according to Effects of context on judgments concerning the reality status of novel entities, published in the current issue of Child Development. Presented with new information using scientific terminology ("doctors"), children were more likely to assess statements as true versus information using fantastical terminology ("fairies"). These results suggest that like adults, children are able to use contextual material to inference the validity of new information.
Read more: Young children don't believe everything they hear
ABSTRACT: Effects of Context on Judgments Concerning the Reality Status of Novel Entities