Try acting out the story several times, letting everyone try every part. Double up if you have to. For costumes, a simple hat, scarf or sign will work. Your nightgown might make a lovely princess dress, and a baseball cap is enough to suggest a brother. Keep a box of dress up clothes gathered from yard sales and rejects around for acting days.
Flannel boards are another fun way to play with stories.
Make one with flannel or felt over an old board. Cut out simple pictures from the scraps or add small pieces of felt or sandpaper to the back of coloring book or magazine pictures. The kids can even make their own. These are good quiet toys for Sundays. Acting out stories with dolls or characters made of clay is another alternative to puppets.