That would give them the benefit of recognizing fairy tales when they hear them.

I have not researched the above quotation but found and interesting article about Einstein, see link

[4synapses.com]einstein-advocating-fairy-tales/

Also the following is worth noting: "Imagination is more important than knowledge. For knowledge is limited, whereas imagination embraces the entire world, stimulating progress, giving birth to evolution. It is, strictly speaking, a real factor in scientific research". Albert Einstein

I'm glad you used the term 'attributed to' because there's no evidence Einstein ever said this along with many other quotes attributed to him.