Do children in your games talk about inappropriate things like this? Or is this a symptom of falling moral standards in Veronaville and my other neighbourhoods? How should parents react?

Discuss.

Children are curious, so I'm not at all surprised. RL kids ask where babies come from and all that (often at the most inappropriate times). Sim kids likely have similar questions. They'll also react with shock if walking in on someone woohooing, and if so, no wonder they have questions. It's possible it's part of a joke or gossip or some such, too.

I had a similar situation in my game recently, where a little boy's father was particularly loose lipped at the dinner table, and he proceeded to tell his school friend all about it as they were playing outside. I found it funnily accurate, these little children talking about things they don't really understand out of earshot and probably getting a lot of stuff wrong.

Oh, goodness, yes! I've seen kids talking to their parent and other adults about sex. I don't know if it's curiosity or just bad manners, but the adults don't freak out over it.

Personally I think it's immoral not to talk about sex with children as if it's just another part of life that will affect them when they're older. The secrecy and shame around woohoo education IRL makes life so much easier on abusers and predators, and so much harder on kids figuring out their sexuality. I bet if the adults around you had been more open, AndrewGloria, you wouldn't have been an elder and needed the assistance of a game to figure out your own!

Are there any memory topics actually excluded from discussion? I remember on my early years of school kids would boast with their knowledge of taboo subjects. In retrospect they were not always accurate, but the leaders got to have their way desribing what certain naughty word meant.

@AndrewGloria I think it's a sign that the Sims in your neighborhood are just really open about this part of their lives, and the children feel safe and comfortable bringing it up as a conversational topic so that they can learn and have healthy relationships when they get older. The foundation of a healthy relationship is communication after all.