I think it was a healthy formative influence for me and primed me for rejecting fads / peer pressure, distrusting authority, etc. Probably also helped me to resist the more unhealthy aspects of a religious time/place, and I was even doing light reading on Cartesian skepticism a few years later, which got me into math. Didn't figure out the name of the movie until years later when it was a big meme.

This is not advice but I definitely advise you to show your small children this movie before they are old enough to think it's corny. They may have a schizophrenic episode or descend into solipsism sure, but they may also get scared as hell by monsters and learn some mental judo, and thank you for it later.