The actress and LGBTQ advocate, who recently told Oprah Winfrey she's "so excited these days by the fluidity of gender that's happening," spoke to PEOPLE about how her own children see beyond gender stereotypes at TrevorLIVE, an event in support of LGBTQ youth.
"My son Miles is a musician and a DJ and sometimes when his band performs they all wear dresses, and he has long hair," Sarandon said at the event on Monday.
Growing up in the melting pot that is New York City helped her children get to know a diversity of people and families, the mother of three explained. "I wanted to raise my kids in New York because, as a privileged kid, I think you can become very isolated and at least if you're privileged, you should understand you're privileged, and not take it for granted."
"I was just not vigilant or talented enough to have done it successfully in Los Angeles," she added.
"As a mother, I know how difficult it is to survive the teenage years intact and the socialization process – if you step out of line, it's so difficult. And there are so many kids these days who are questioning, gay or transgender, who have a very tough time and it could be very dangerous for them. I think it's really great that we are having all these conversations and getting kids to understand that there is somewhere we can go to talk it over," the 68 year old said of her support of The Trevor Project.
Sarandon has been an advocate for the LGBTQ community for decades, and she has a lot of admiration for people who come out publicly, including Caitlyn Jenner.
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"I'm really happy that she was authentic and that she came forward and that her family has supported her and asked questions," Sarandon said of Caitlyn.
However, she pointed out that Caitlyn represents a very specific demographic, and that many transgender people face an even more difficult road to acceptance.
"I think it's important to remember that there are a lot of transitioning people who do not have the means that she has and do not have the attention and are maybe not in a culture that is as embracing as the one that she's found herself in," said Sarandon, who plays Elle Fanning's lesbian grandmother in the upcoming Three Generations, about a transitioning teen.
But at the end of the day, Sarandon is a supporter of everything and anything colorful. "I think the more crayons you have in your box to color outside the lines, the more exciting it is," she said.