I teach adults, not children, but here's what it looks like in my classroom: At the beginning of the semester, I distribute a getting-to-know-you questionnaire asking people's preferred names, pronouns, and a little bit about their interests and hobbies. Whatever name and pronouns they tell me, that's what I use through the semester. Sometimes they say "My legal name is Robert, and I go by Rob, and I use he/him." Sometimes they say "My legal name is Robert, and I go by Jane, and I use she/her." And sometimes, "My legal name is Robert, and I go by Jane, and I use she/her, but only in this classroom, because I'm not out to everyone in my life." I've heard all those variations from my students, and I honor them all. FERPA says I'm not allowed to call their parents on the phone and tell them what name and pronouns the students are using, but I wouldn't do that in any case; it's rude, and breaks trust.
Minors are different, and the laws for minors are different. Still, if I taught high school math instead of college math, I would want my student to be able to go by Jane and she/her in my classroom if they wanted to. It seems like a courtesy without harm, and it gives Jane a safe space for some exploration of identity.
Am I prescribing any kind of medication for my students? Absolutely not. I am neither a physician nor a psychologist.
Is this what you have in mind?
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I would say, rather, that gender and sex and parenting and family are a complicated mix of biology, psychology, social structures, and individuals' choices. I would like to see norms expanded to embrace a wider variety of individuals and social groups.