The 14-year-old girl, Pakistan's first National Peace Award winner, was shot and seriously injured by unidentified gunmen in the country's Khyber Pakhtunkhwa province Oct 9.
She is currently being treated in Queen Elizabeth Hospital, Birmingham, Britain.
In the essay written in Daily Beast, the actress wrote: "I felt compelled to share Malala's story with my children. It was difficult for them to comprehend a world where men would try to kill a child whose only crime was the desire that she and others like her be allowed to go to school."
The 37-year-old raises six kids -- Maddox, 11, Pax, eight, Zahara, seven, Shiloh, six, and four-year-old twins Knox and Vivienne -- with fiance Brad Pitt and the children gave solutions and asked question about the incident, reports dailymail.co.uk.
"Our 8-year-old (Pax) suggested that the world build a statue for Malala, and fittingly create a reading nook near it. Our 6-year-old (Shiloh) asked the practical question of whether Malala had any pets, and if so, who would take care of them? She also asked about Malala's parents and if they were crying," Jolie wrote.
"Still trying to understand, my children asked, 'Why did those men think they needed to kill Malala?' I answered, because education is a powerful thing," she added.
The hospital confirmed that Malala had a 'comfortable' night and doctors had been impressed by Malala's resilience.
But the Pakistani teenager needs 'prolonged care' to help her recover from the physical and psychological effects of the attack and it seems likely her treatment will take more than six months.
It is unclear whether it will ever be safe enough for Malala, whose name means 'grief-stricken', to return home. It is likely she will remain in Britain.
UN ambassador Jolie hopes Malala will be in contention for a Nobel Peace Prize.