Let children finish a story before teaching them how it could have been told better.

A child telling you something is doing two things at once: reporting an event and finding out whether you want to hear from them. Interrupting to fix the order, the grammar, or the exaggeration answers the second question in a way you did not intend. The story gets better and the telling gets shorter, until eventually there is not much telling at all. Fluency comes from practice, and practice requires an audience willing to sit through the messy version.

Hear the whole thing without improving it. Respond to what happened rather than how it was said. Corrections keep well and can wait for a moment that is not about them.