This is very common. Do not panic!!! When you see this it is very hard not to panic and react, but that is the worse thing to do. They are very young and at some point one or both of them had to of seen something to react and be curious. You did right by calmly talking to your daughter, but your first initial reaction was not good. You should of calmly told both of them to pull their pants up and called the other mother over to discuss the situation together first. Asking them what they were doing and why? Then explaining that it wasn't a good choice to do this. You need to first understand where it came from and the only way is by asking. You don't want your child to be afraid to talk to you, so reacting in a panic will sometimes prevent your childs openess for future situations. This is where to start. After understanding why they made this choice is the second step in handling it. Having an openess even with a 5 year old can help you understand and help you help the situation. You may find out things that you may not want to here or just that it was something seen on tv or even walking in on you and your ex at some point. Either way you will find the root of the problem and you need to prepare yourself for whatever you may hear. STAY CALM.
i am also thinking you may check if these children or one of them has seen this behavior is there any way it could be learned, any inappropiate magazines in the houses TV.. PC they are very young, to be knowing this much without seeing.it I agree with the above post about not making an issue, however I think more supervision would be better and no seperate rooms for play. Good luck
Thank you soo much for your input!! You are very right about the first reaction to stay calm! Which I obviously didn't! Wow, its amazing with what your not prepared for... But I do appreciate the suggestions and hope I can keep an open mind and a calm additude. And the last thing I want for my daughter to be afraid to talk to me... Thank you!!