Often a confusing question posed to children, this phrase is powerful, biblical, and a fair ask. So as not to confuse simply ask, "Do you believe Jesus is your Savior?"
"...so that Christ will dwell in your hearts through faith - that you, begin rooted and grounded in love, may have the strength to comprehend....the love of Christ that surpasses knowledge, that you may be filled with all the fullness of God." -Ephesians 3:17-19 (ESV)
When you believe Jesus is who He says He is (Son of God, Savior, LORD), He comes into your heart so you begin to understand more deeply His love for you. Kids don't need to ask Him in. Jesus enters the heart when one believes.
When our kids are asked this question, may we hear the sweet words, "Yes, I believe and I know I am loved."