For example, what kind of story would Geralt the Witcher tell his kids? “Once upon a time there was some normal everyday shit that went how it always goes”?
Must be the equivalent of realworld kids saying “Daddy tell me the story about the Tesco delivery again! The one where they forgot the 2L bottle of Pepsi Max!”
You would think they interact with stories about monsters the same way a German peasant living near the Black Forest interacts with them, only worse, because the monsters are real and elves will actually kill you for trespassing.