There’s a great toy called Rory’s Story Cubes. They are nine dice with pictures on them. The way we play with these (my kid was 4) is to throw all 9 dice. Then I would casually guide the story with the kid making all the decisions.

I would ask where the story takes place and the kid would choose one of the images - say a fountain. I’d ask is the fountain in a park or in front of a house/building. I might follow up with “do you know of a park with a fountain?” While I might be thinking of an ornate sculpture, the kid might reply with the water fountain at the park.

Then I would ask who the story is about, with follow up questions about the subject’s demeanor or name. I would stop occasionally to see if the kid can recap our decisions.

Kids are remarkably fascinating. They are smarter than they appear. They often understand more than their vocabulary allows them to describe what they know.