Based on the sources, the key distinction between literal and symbolic understanding lies in the depth of interpretation [1].

• Literal Understanding: This involves taking the material at its face value, focusing on the direct and explicit meaning of the words and events described [2]. In the example provided, a literal interpretation of a story about a lone traveler in a dark forest is simply that the story is about "someone walking through a wooded area at night" [2]. It focuses on the concrete actions and settings without looking for any underlying meaning beyond what is explicitly stated.

• Symbolic Understanding: This goes beyond the surface level and involves recognizing that elements within the material (such as symbols, metaphors, and allegories) represent deeper layers of meaning, universal or personal archetypes, and concepts [1]. In the same example, a symbolic interpretation understands the "dark forest could symbolize challenges, the unknown, fear, or the subconscious," and the "lone traveler could represent individuality, vulnerability, or the journey of self-discovery" [3].

The sources emphasize that a symbolic understanding involves actively processing external information through the lens of your own emotions, beliefs, values, and past experiences [1]. The external narrative acts as a "trigger or a mirror reflecting your internal landscape" [1]. This highlights that symbolic interpretation connects the external material to internal states and deeper psychological meanings, which is absent in a literal understanding that remains confined to the surface narrative.

In essence, literal understanding deals with the "what" at a basic level, while symbolic understanding explores the "what else" and the "why" at a deeper, representational level [1-3]. As we discussed, the ability to engage in symbolic interpretation often requires a significant degree of self-awareness [4].