UTXO for a 7 year old:

We buy a large bucket full of dough. This is our first UTXDough.

We take a large piece of the dough. You get this piece. This is now your UTXDough. The rest of the dough stays in the bucket because we want to save it for later. This is the leftover UTXDough.

You can do whatever you want with your dough. You can cut it into lots of small pieces, then you have lots of UTXDoughs. But you can also knead everything together again. Then you have one large UTXDough again. You can give parts of it away so that your friends can have their own UTXDough. And you can mix UTXDoughs that others give you with yours to make an even bigger UTXDough.

You decide how many UTXDoughs you want and what shape they should be but you can always change your mind and rearrange your UTXDoughs.

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