I'd argue a strong impact for young children, is that they haven't formed but a small fraction of the concepts that adults have. They simply are unable to generate as many or as elaborate of false memories because they lack the necessary array of concepts required for a higher level of creativity an older human can put together.
Simply put, if you're aware of seven concepts, that's a hard limiting wall for your creativity when it comes to inventing false memories. What would the false memories consist of? They can only consist of what you know. And further restricting that limited set, is the ways in which you understand to arrange/rearrange what you know.
You understand the concept table. You know the generally defining characteristics visually of a table. You know some of the ways a table is or can be used, however you only possess a limited knowledge of tables and how they can be used. That limited knowledge set of "table," restricts your ability to utilize the concept "table" in your false memories.
No one is aware of only 7 concepts after the first few days of life. Children are exceptionally "good" at mixing reality and fantasy and not having the critical thinking skills and knowledge to reject the reality of their dreams.
Simply put, if you're aware of seven concepts, that's a hard limiting wall for your creativity when it comes to inventing false memories. What would the false memories consist of? They can only consist of what you know. And further restricting that limited set, is the ways in which you understand to arrange/rearrange what you know.
You understand the concept table. You know the generally defining characteristics visually of a table. You know some of the ways a table is or can be used, however you only possess a limited knowledge of tables and how they can be used. That limited knowledge set of "table," restricts your ability to utilize the concept "table" in your false memories.