Children do really say the darnest things. If you listen closely to what they are saying you may just be lucky enough to hear them telling you about one of their past lives.
Kids are blessed with souls which are pure and untainted by their environment which gives them the adtantage over adults of insight into the spiritual realm. Because they have so recently been in spirit form, and can often remember this, they can sometimes confuse their new lives with past lives that they have had.
I've previously written about magic ages, and without a doubt the ages of two and seven are a particularly special time for children. 'Terrible Twos' are terrible for a reason: they quite often have a soul shock where their soul trys to reinforce the lessons of past lives and make them remember these lessons. It can be a traumatic time for a little one to be flooded with so much information, and not particularly nice information at that. No wonder why they are so upset and unmanageable during this time. Old Souls are the only exception to this rule. The age of seven on the other hand is the magical cut-off point where their Crown Chakra starts to close a little and the auric bodies start to constrict towards the physical body to keep it safe. Psychics and readers are the only exception to the number seven rule.
they can recall many past lives because their soul has regurgitated it all up while they were inbetween lives, during the assesment or train station phase (see my what we get up to into between lvies post herre)
Night terrors are typical of past life recall in children and are a fascinating way that the soul makes the lessons of past lives more manageable as children get older. My Night Terrors post should help you gain some more insight into this is your child is suffering from these.
Another tell-tale sign that your child is still confused between their current life and their past life is when they can't get out of the habit of calling you, or themselves, by the wrong label. For years my son would always say 'I'm your dad and you're my kid.' to me. It wasn't a mistake on his part, he knew full well that I was 'Mum' but it took years to get him out of that habit.
Typical things that a child might say when they are recalling a past life:
'You're my sister and dad is my friend.' (relationship confusion)
'I watch the sky at night when i'm on the sea.' (unexplained environment settings)
'I don't like big scary men because they came and got me last time.' (phobias of certain types of people)
'The water made me not breathe last time so I don't like it.' (unexplained fears)
'My house is the small house on the hill.' (differences in their surroundings)
Also watch for things that they are drawn to and are mildly obsessed with. They may be playing out the same hobbies or roles that they had in a past life.
If you are really lucky you mayget a detailed story from your child about their past life where you'll be able to ask them loads of questions. Remember that they are still only little children though and their comprehension of their past life and current life is still coming together and that they are still coming to grips with their new life and that they don't uite have the vocabulary to properly explain what they are experiencing.