I echo the sentiments of the value of taking your kids out boating young. They do yield some of the most precious and treasured family moments of togetherness. Of course there are other dangers/fears kids can have when boating other than maybe falling in. True story. When we obtained our first vessel, a 20 ft trailer yacht, (called Princess Leia - wonder why), it was not long after there had been on the TV news, the story of how the crew of a yacht returning to Auckland after taking part in the Auckland to Suva race, the name of which was 'Snow White', had it hit a whale, (they collided with it in the dark - the whale did not attack it, I hasten to add, in view of an earlier thread), and the yacht was badly damaged enough it sank. The crew of seven (true) were all rescued by NZ Air Rescue Services, after sending a mayday and activating their EPIRB, in an amazingly straightforward manner, and the news header next day naturally read, "Snow White's seven dwarves all safely at home after copybook rescue, following whale sinking their boat."
Well, our first day's sailing went very well, but we had noticed our 5 yr old seemed more subdued than usual, sitting there in his life jacket looking a bit pale and very serious all day, unlike out 3 yr old who was having a ball. All became clear when on returning to the ramp 5 yr old announced loudly, "Well that was good Dad, and thank goodness we dodged any whales out there!" We all fell about laughing, then realised just how brave the wee tyke had actually been, because he had heard the report and genuinely believed a sinking possible, even though we were just out in the bay off Napier, but he had not voiced his concern at all.