I consider children as well as elders very dear and sacred.
I feel they should be treated with respect and trying to come from a perspective of understanding, and unconditional love as anyone else. Sort of a talking to at one's own level if you all would allow that phrase.
I as well as many children had imaginary friends at a young age. At that age I didn't understand it all, whom they were what they wanted and asked questions to try and understand it myself. I was often told not to speak with things, and things could be dangerous and not to talk to strangers. Etc. Of course there are very real reasons for this.
I never could not speak with imaginary friends and still to this day can not deny I speak with whatever one wants to call it, guides, higher self, imaginary friends, myself and own thought process, God.
Thing is if it is real to them it is real to them. They should naturally be approached with gentleness and by someone they can trust.
They're children after all, their feelings and their thoughts are important, like everyone else.
Reminds me of a recent occurrence where my neighbors 4 year old son ran up to me while I was outside enjoying the day siting on the porch, and within ear shot of his father said loudly and proudly "Daddy!! She's the ghost!!!"
And my thought process at 34 and having no children and being called a ghost by my neighbors son, and not knowing exactly how to react was along the lines of "Alright. So this is happening".
I reacted in the only way I knew or felt how to. I told the child "It's okay, there are no ghosts here you really have to worry about".
His father reacted by saying "She's not a ghost she's just the nice neighbor".
Point? I went about it on a gut reaction with gentleness and kindness and in a manner as not to instill fear. I did not tell him- there is no such thing as ghosts- I did not rant and rave about negative beings and demons- And I sure didn't tell him he was foolish.
In a way I told him the truth. "You have nothing to fear".