Okay kiddo, so you know how when we watch TV, it comes through the air into our antenna and then shows up on our screen? Well, some places in the world, like the United States, are changing the way they send TV signals through the air. They used to be sent through something called analog signals, but now they are switching to something called digital signals.
When they made this switch from analog to digital signals, they needed more space to send all the new TV channels and other cool things like wireless internet and cell phone signals. So they went looking for some extra space and found it in what's called the "digital dividend."
The digital dividend is like a spare bedroom in a house. It's extra space that the government owns and can use for things like TV signals, internet, and cell phone service. When they switched to digital TV signals, they freed up some of this space, kind of like cleaning out a spare bedroom to use it for something else.
Now, this digital dividend space is being auctioned off to companies that want to use it for wireless internet and cell phone service. So now, we can have faster internet and more cell service because of this extra space that was freed up from the TV signals.
And that, my little friend, is what the digital dividend is all about!