To get the joke, you need to be familiar with the famous scene from the film TheTreasure of the Sierra Madre starring Humphrey Bogart.
To the groans of my family and friends, I never hesitate to use the line “We don’t need no steenkin’ badges” whenever the word ‘badges’ comes up in any conversation. Alas, many people have never seen the film and hence I usually just get baffled looks, similar to the reaction I get to the ‘I am Spartacus’ line.
With my immediate family, I have used the badges gag so often that even though they haven’t seen the film, they recognize the allusion. I particularly enjoy using it when the word ‘badgers’ comes up, because the pun and the absurdity of the reference is what makes it funny, to me at least.
I have the sense of humor of a six-year old.