Upon birth, children are mostly little astrally-connected beings. They experience most of their awareness in the astral and in-so-doing retain a natural sense of interconnectedness and loving acceptance.
The main purpose of the human body is to experience a sense of individuality. We begin entirely connected to the astral, and by age 4 or so we've lost most of that connection. By age 7 it's gone almost entirely - unless in either case the child is around people who are psychic or are functional in the astral realms.
We see two main groups evolve in humanity: those who are intensely individual and those who are naturally inclined toward interconnection. Interestingly these two groups, in America for example, exhibit themselves as Conservatives and Liberals, respectively. Conservatives, as a general trend, focus on strong individuality and maintain a strong sense of ownership and personal responsibility to advance. Liberals, as a general trend, tend to want peace and interconnection, recognizing that we can help each other attain things without a serious need for competition and strong self focus. These are big generalities but the point can be made and without much stretch of the imagination it can be seen as valid, when focusing on behaviors and despite any specific political party connections.
Is there a right answer on raising your child?
One choice to be strongly individual (related to monetary and current power model "success") or raising your child to be aware of the similarities within humanity and less focused on individualistic success, maintaining that which benefits the whole. This is an enormous subject and I'll likely address it in portions now and then or in a book. Feel free to run with it and see where your contemplations bring you. I urge you to ACCEPT your child and guide them, not to follow your example necessarily, but to find their own purpose, their own value, and their own path in life. A child empowered to make their own decisions early will find more success in life than one who is severely restricted and only following orders, in my opinion; although both types of people exist in this world and may continue on until humanity evolves into two separate groups focused on the two generalities mentioned above.
Making such grandiose claims without peer reviewed research studies or physical proof would make this simply an Enlightened Musing, but certain facts can be explained by the idea of an astral-physical early childhood, then physical (and some astral) in later life.
On REM sleep: small children dream very frequently, and enter into REM sleep when first falling asleep. Adults tend to need hours of sleep and a deep sleep in order to enter REM sleep. Why would this difference happen?
Young children are still connected to the astral imagination realm. Their mind operates freely in the astral, with more imagination, dreaming, freeness of thought without labels, lack of guidelines for appropriate behavior, and without a solid sense of self. Children access the astral easier because they haven't yet learned the rules of a purely physical world.
Adults have learned that only specific behaviors are entertained as accepted and normal and thus instill those guidelines and societal expectations on themselves. This is reinforced by a very long trend of needing to belong to survive.
In conclusion, children access the astral frequently and dream easily and quickly, allowing a beautiful freeness of imagination, easy acceptance of others, a freeness in sharing, a natural tendency to help others in need, and a mind like a sponge as they very rapidly assign neural connections to their experiences, as modeled around them by adults.
Adults learn the physical restrictions and guidelines necessary in their respective societies and cultures and adhere to those guidelines. Governments, Religions, Mass Media, Bankers, etc make sure we are corralled into pigeon holes of humanity, labeled, and separated in order that we can be controlled and assure continuity of the physical human realm.
In death our body dies and our mind retains it's connection to the astral, where it decides if it must return to earth, or another physical realm, or if it can go on to attain Enlightenment, godhood, act as a bodhisattva, or enter other realms to work off karma as needed, etc, etc.
Edited to add:
The phenomenon I describe above also accounts for children not remembering their early childhood. Once we reach a certain age and our memories are stored in the brain we learn to only feel those memories and define ourselves by them. We call the free astral part of our mind our imagination, our brainstorming, etc.