I have to say without a doubt kids are the funniest things on this planet, as Bill Cosby knows for a fact, "They say the Darndest Things"!
To be honest I am not sure how this topic came up. I was either outside or in another room at the time when the discussion came up.
In the summer of 1973 a family friend ask me, "Are you prejudice?" Since I was only nine at the time and (for the record I have never heard the word before) replied, "No, I am Sagittarius". As you can imagine this got everyone laughing - though I still didn't know I had said anything funny.
After everyone stopped laughing it was explained to me what prejudice meant. I replied, "No, I am not prejudice then."
This funny one-liner still comes up at family gatherings. I now reply, "What is important is what is on the INSIDE not the OUTSIDE!"