Yes. My kids get VERY dry hands especially in the winter because they are always washing them. We use the Nivea Creme on their hands all the time. My kids are 5 and 3. I wouldn't use it on a child who can't keep their hands out of their mouths, though. We put it on at nighttime.
Creams and lotions all work the same. Essentially, it is a wax coating to keep moisture in the skin. Most people apply lotions and creams to dry skin, but that is not how you are supposed to use it. Doing it that way prevents moisture from getting in. The best is to apply lotions and creams on damp skin, so the lotion will help keep the moisture in the skin.