The story is done after the fight against Raziel at the "Old Lualombo Ruins", when Varea comes to stay at your castle. The dialog option "Preparations against Raziel" will clearly state:
"--- Note ---
The main story isn't done further yet. It'll be able to advance the time several years here later in the development.
This will cause you to see children you have made before, and other events that were affected by the choices and events you've done before progressing with the main story."

Children won't be around until I make the time skip and advance the time.