I had my daughter falling out of her high chair laughing this morning when I took Bear (her lovey) and used him as a hat. She kept handing him back to me all morning saying “mama, mama, hat.” Then she cracked up all over again when I put him on my head. It’s a cool developmental milestone, the ability to recognize when something is out of place. If I had tried this several months ago she wouldn’t have found it funny.
Humor is correlated with high intelligence, sociability, and self-esteem. Correlation isn’t the same as causation, but it certainly doesn’t hurt your kid to have a sense of humor. And it’s great fun trying to teach it to her!