Over here kids know the word hanky, it's what their mum blows her nose with. Larger silks, I call an "elephant's hanky." Calling it a "hanky" also allows you to slip in the odd nose-blowing gag.

Kids are smart. They know what a hankie is.
I have never had a problem there.

After a recent school show with 4th and 5th graders I got a letter from one of the kids. It read, " I really liked the trick you did with your rag that turned into a magic wand."

I like that a lot better than silk. A "rag" it is.

For adult shows, I throw in the old gag about the cure for the common cold:

"Drink 8 glasses of prune juice every day."
"Does it cure the cold?"
"No, but it makes you afraid to sneeze."

Achoooo...where is that rag????

LOL

Harris