Just recently I wanted to show my kids the 5.25" floppy disk - I had a small stack somewhere, but could not find it. I have finally found an 3½" floppy and have shown it to my kids (14 y.o. max). Evidently they never used such a thing, but I was genuinely surprised they didn't even know what it was. After a considerable amount of time one of my daughters hesitated but said something like: "Wasn't it like old USB stick thingy?". Given they have no USB stick either that's not bad, I guess. Then I proceeded to explain that a floppy disk is pictured on Save buttons - you just had to see their faces, it was a moment of the big revelation.
Given that computers play a huge role in our lives, shouldn't we taught children some kind of history of computers? It's not that big anyway.
... have they seen Save buttons with the Floppy pictured on it, either?
Since they have never seen floppy disks before, why were you surprised that they did not recognize what they were?