As they say, a child's brain is like a sponge. It is easy to imprint on it. Whatever input he/she receives during the early years play a vital role in the overall development of the child. Reading story books and novels can greatly enhance a child's vocabulary and adds a new dimension to his/her personality.

Yes. Good or bad habits form during child hood between the age 3 to 5 years. The  parents  should be aware of this fact,

Abhishek Sharma wrote:

As they say, a child's brain is like a sponge. It is easy to imprint on it. Whatever input he/she receives during the early years play a vital role in the overall development of the child. Reading story books and novels can greatly enhance a child's vocabulary and adds a new dimension to his/her personality.

Communication is the key ...the more you communicate and build a rapport the better for child's personally development since the child becomes more confident and secure. It starts right from the day the child is born ..good manners shd be inculcated straight away. I agree that story books , reading and story telling has a great role to play in parenting. My own children still ask me about some of the stories I told them when they were young. 

The problem arises when parents are employed. My son and his wife, both are employed. Recently when my son was here, I had presented him a few story books with illustrations. The book contains few stories from Mahabharata and Ramayana. I insisted my son  to ask his wife to read these stories during bedtime

 These pictorial story books will definitely leave an impact on his only daughter, who has just completed her 3rd year and entered in to her 4th year

Regular conversation with children is the best key for parents to understand their own child and there feeling.  

Children are capable imitating.

My youngest daughter, who lives in the USA, used to closely observe me when I start my Painting (I am an amateur Painter) and start painting on a piece of paper. Though her paintings were not good, I used to say, "Well done"

Over a period my daughter has become an accomplished painter. And she exhibited many paintings and they were sold too in the USA