Socialism is the government control of goods and services. It is the authoritarian transitional period before reaching communism. A necessary means to achieve a utopia. What is described in that image is a redistribution of wealth which can be found in some forms of socialism but is actually found in any progressive taxation system which is almost every modern country in existence. This is also not the overt control of goods and services by the government. This almost necessarily excludes socialism as being the underlying/underpinning ideology underneath the scenario outlined in the image. So what is represented in the image? A mixed economy with a progressive tax system. You just described the US Tax system, not socialism. If you wanted to describe socialism but wanted to teach Timmy (age 9), Jessica (7), and Oliver (3) about socialism... Every normal household functions like a socialist state. Why? The parents are the government. They own all goods and services all other household members enjoy. They can dictate who and when gets access to which goods and services. BUT THIS IS THE KEY PART TO TEACHING THEM ABOUT SOCIALISM: If the father gets laid off, you must kill Oliver in front of Timmy and Jessica. And then explain that famine as struck and the current demand cannot keep up with supply and the government is making a decision for what is best for the nation (household). ^This is not really a joke. This is how socialism works in reality. No one on this site will kill their kids to teach them what socialism is but just in case: don't fucking kill your kids. Perhaps just tell them what it is like. If you want to teach them about capitalism, allow kids to get bonuses in their allowance and take penalties in their allowance based on their performance. Good grades? Bonus. Did their chores? Bonus. Got into a fight with a sibling? Penalty. Keep it objective and keep it consistent.