I got into a situation when a 7-8-year-old child asked me, "Who is He?", pointing to the Buddha statue I have. This child had an idea about God and an idea about worshiping God with folded hands, in a 'Namaste' (we are a Hindu family). I did not want to say to him that, "He is a God", which would have been an easy way to answer his question.
So, I tried to explain the first noble truth to him. I said, "when you want an ice cream or a toy, you start crying. The Buddha teaches us not to cry or want an ice cream". That did not ring any bells to him, especially that didn't made him put the Buddha alongside other religious figures he knows.
Then I tried to explain to him that the "Buddha attained Nirvana." This went a whole tangent for him.
Finally, I said to him that," The Buddha told us to look for God in our heart." And I thought that the discussion will have to wait another decade by the time he would understand the first noble truth of suffering.
So the question is how do you talk to children about the Buddha or Buddhism?