I've tried to make it a point to not hide anything from my kids. This goes against my more puritanical upbringing, but I don't want my kids to think there's anything shameful about the naked body. Both my wife and I try to be very open about it. When the kids ask, what's this, what's that, we tell them, and they think about it, and then they lose interest.
One day, after coming home from work, my two-year-old excitedly ran up to me and whispered in my ear, "Peanut! Peanut!" I think I know what my wife was talking about to them during the day.
