Phelps received an upper class education, attending the Abbot Academy and Mrs. Edwards' School for Young Ladies. She had a gift for telling stories as a child. One source noted, "She spun amazing yarns for the children she played with... and her schoolmates of the time a little farther on talk with vivid interest of the stories she used to improvise for their entertainment. At thirteen, she had a story published in "Youth's Companion" and other stories appeared in Sunday School publications.