Gender neutral means not specifying a gender. It is often used as the terminology when speaking about a person. However, the term can also be applied to any items and situations that are often gendered such as toys, colors, or clothing.
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Examples of gender neutrality:
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Referring to the "mail carrier" rather than "mailman," using the pronouns such as "they" instead of "he" or "she," or painting a baby's room green rather than pink because it's a girl or blue because it's a boy.