Here's a very helpful response from my friend Gordon:
I reckon the main problem is that we see understanding of God as a matter of comprehension rather than repentance.Add your own ideas here.
If comprehension is the issue, then not only do children have a problem but so do grown-ups. Who is God? How may he be known? What does it mean to follow him? The answers to those questions fall into the category of either
(a) impossible to answer satisfactorily for anyone operating with a human mind, which would be most of us.
(b) easy to comprehend but impossible to accept on account of our status as individuals dead in our sins.
Once we realize that the real issue is sin, and that the only way to overcome this is by the power of the Holy Spirit working through the resurrection of Christ, then the answer becomes 'by grace'—with the only proviso being that we make sure that we are using simple words that little kids can understand, like 'dad', 'God is the boss', 'sin' 'I'm sorry' and 'you're forgiven'.