Nope, it's such a small amount (as soon as you taste it you stop) that it shouldn't affect the smell of your breath.

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Unless the small child continues chewing his/her nails regularly (which SHOULDN'T be the case) I don't see any reason why not. The biting should't even be happening while the stuff is on, and won't unless he/she somehow enjoys the taste (it's SUPER bitter). That's my opinion, if you're really worried ask ORLY yourself: http://www.orlybeauty.com/customer_care.php

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