Children can be confused by the statement that God made man “in His own image,” thinking that means that God looks like us. (For that matter, adults can think that way too!) An illustration that I have used that seems to work well is that of looking at yourself in a mirror.
Ask the children, “When you look in a mirror, what does it look like? It looks like you!” But is that mirror you? Of course not. Man was made not to be God, to be equal to God, or even to, on the outside, look like Him (God is spirit – John 4:24,) but to reflect the character of God. You were made to do something that nothing else in all creation can do – to demonstrate what kind of person God is. To show His love, His holiness, His justice. (Note: Not His attributes of omnipotence, omnipresence, omniscience, etc., but His character.) The problem is that sin has ruined your ability to reflect Him perfectly the way He intended.