T.K.
Hi T.,
This is SO normal-- so don't get too worried about her ending up as one of America's Most Wanted. :)
But your very right to try and nip this in the bud as soon as possible.
I think you're doing exactly what you should, and are handling it very well. During all of this, she's learning boundaries. Just because you like it, doesn't mean you can take it. At 4, she can understand the basic concept-- but she doesn't understand the moral part of it. The most she can probably understand, is that it hurts peoples feelings. So explaining that to her may help. Find one of her favorite toys and talk with her about how much she likes it. Then ask her how she would feel if one of her friends came over and stole it away from her, took it to THEIR house, and your daughter never gets to play with it anymore. Talk about how sad that would make her feel, and how she might worry that everytime her friend came over, she'd take ANOTHER one of her toys. Then your daughter might not even want to be her friend anymore.
Something else that's really important, and you didn't mention, is some form of punishment. The first time this happened, she didn't know-- you can't reall punish that. (And really, she DID know-- they ALL have an instinctive sense that what they're doing is wrong-- that's why they HIDE it. They wouldn't hide it if they didn't know it was bad, right? But, they're testing -- they're just learning and even though she has a God given sense of right and wrong, it isn't fully developed yet.) But, now she's been told by you. A few times in fact. So now, even if she doesn't fully understand why it's wrong to steal, she's been given the rule. So if she breaks it, there has to be some form of punishment. And it needs to be something that will teach the lesson. So for example, when she steals, and causes someone to miss something that belongs to them, you take something that belongs to her.
And it has to be something that hurts and makes a strong impression. So you take away a favorite toy, a favorite movie, etc. Also, what worked great with our kids, is making them admit to the person they stole it from, and teaching them restitution.
Several years ago, when one of our daughters was 4, she stole a lip gloss from Walmart. Once I got home and realized what she'd done, we had the talk I descibed above, and told her she was going to have to confess. So I took her back to Walmart, to the Customer Service counter and she had to tell the lady what she did. She cried during the whole thing, told her what she did, said she was sorry and that she'd never do it again. And she hasn't.
These kind of experiences are tough on them, (and you!), but they're MAJOR learning experiences and are important for them to have to make them good and honest people.
T.