I was curious to see what my 7 year old sister thought dreams were. Or more to the point, where they are. If she thought it was a real place, or it happened in reality. Or if she knew it was in her head. She had a dream she was in our house and she heard fire so I spoke to her about it.

In short, it failed. Here is how the discussion went.

Me: Say, do you know where dreams are.
Sister: What do you mean?
Me: Well, that dream you said you had. Where do you think you were while dreaming? Where is the dream happening?
Sister: I'm asleep in my bed so uh... well it was in the house?
Me: But how could you really be here if you were asleep?
Sister: Uh wait... let me think (long pause)
Me: Any ideas?
Sister: Wait what do you mean?
Me: Where is the dream happening? You are in bed, right? But you are seeing things happen in the dream. But the dream can't be real, so where is it happening?
Sister: Uhhh
Me: Any ideas?
Sister: I was in the house.
Me: Yes but the dream, where did it happen?
Sister: Wait what?
Me: Uggh, look. You are in bed. You have a dream. The dream isn't happening here, if I woke up while you were asleep I wouldn't see you. The house couldn't be on fire in reality if it happened in your dream. So where did it happen? Where do you think dreams are made?
Sister: No the house wasn't on fire, I dreamed I heard it.
Me: LOOK IT DOESN'T MATTER WHAT HAPPENS IN THE DREAM. Just where do you think the dream is? Its not happening here, so where do you think it happens?
Sister: Well I'm asleep in my bed---
Me: Just forget it.

Anyone ever asked a young child what they thinks dreams are and got an actual response? I'm curious to learn what kids think about it but so far I'm not sure my sister even has the capacity to think like that at all hahaha.