My Grandmother's Stories : A Collection of Jewish Folk Tales
Now you certainly don't have to be Jewish to enjoy these stories. Sure, they draw on "the old country" and yoda-esque grammatical structures to color the telling of the tales, but well, the stories' morals touch on subjects ranging from jealousy and selfishness, to complaining and judging books by their covers, all of which merit discussion between adults and their younger ones, regardless of religion and/or background.
As a Jewish teacher in a very urban, non-denominational public school, I have used several of these tales along with several other non-Jewish folk tales in the classroom, and have consistently found them to be incredibly well received by the healthy majority of my students.
The lessons discussed in this book make for excellent launching grounds for further discussion between adult and child.