On a very practical level, everyone should know the basics of how a computer works. At the very least, this helps you to better describe a problem when you are trying to get help for your computer from some more knowledgable, impatient techie. (I know, I used to be one.)
But that is just one advantage. When your child understands how the hardware works, he or she understands the limitation or problems with software and can fix problems. He or she is a better consumer when your family needs to upgrade parts or buy software. Understanding the hardware can even expand your child possibilities for interesting and lucrative summer jobs or businesses.
What They Need To Know. The basic parts of a computer (monitor, tower, keyboard, mouse, etc.), the basic systems of a computer (memory, processor, power, etc.), how the basic systems work together.

