I tell my children that they're beautiful all the time but I don't really mean in it in a physical sense (although of course they are lol). A person is beautiful if their soul is beautiful, if their maners are lovely and their conduct is kind and graceful. I'm pretty sure that they understand the context that I use it in and that their ideas of beauty aren't rooted in the physical.

I've had to start defining gender for Yasin lately because he calls everyone 'he' regardless of whether they are male or female. He told a check-out chick she was a good boy a few weeks ago lol.