Pulpit Magazine gives good advice on explaining the Gospel to children:
"Certainly children are limited in their ability to understand spiritual truth, but so are adults. Very few people intellectually understand all the gospel truth at the moment of salvation. Fortunately, the essential truths are basic enough that even a child can understand. Jesus Himself characterized saving faith as childlikeness (Mark 10:15). True belief is not a function of advanced intellect, sophisticated theological understanding, or complex doctrinal knowledge."
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HT: Tim Challies