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I love both names, even though I think of the month not the word for August. But then I remember that the month was named after the name, which was from the word, so it all goes back to the same place really. Plus, I have a nice ancestor named August, so I'm likely to use it as a mn.

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I love Peter, and have never heard of it being slang for a penis. It doesn't sound like that'd be an issue where you live either. Plus, people will get used to using Peter as a name, and even if there is that association, it will fade for those who know him. My FIL is named Dick, and I've gotten used to it, even though when I first met him, I could barely say his name because I'd get embarrassed! But it doesn't bother me anymore. I don't think peter as a word is a problem, because I don't see it as a problem for August. The main problem I see is that your family has had a bad experience with a Peter, however a ten year absence may not make that important when you have a child. You'll have to wait and see.