Everybody certainly feels different about the existence of neo-pronouns and certain identifiers of the sort, but those people are definitely a minority when it comes to self-expression. Especially from a perspective of conventional societal gender norms and stereotypes, it can be confusing to witness from an outsider's point-of-view, but you needn't worry too much about your children. So long as you accept your children for who they are, and teach them what you believe is proper etiquette, they should end up fine.