Preschoolers Get Suspended

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On the news today was the story of two little 4 year old kids who fondled one another. They got suspended. I don't think they should have been suspended. Psychology tells you that children are curious at this age. They are simply exploring. What should have been done is to sit down with the kids and try to explain to them that they should not touch each other in that way. Do you agree? How do you think this situation should be handled?