Attn: Catholics, Cafeteria Catholics, Pius X Catholics: Am I bad Catholic parent......?

My 15 year old daughter tells me about the people she knows and associates with and I cringe. Druggies, and other teenagers having sex, strippers, and people dating Jewish people, etc. She tells us that she knows these people but she doesn't do any of this stuff. I tell her that her Mom and I trust her, "Because we are excellent at raising children, and that we have every confidence that she will do what is correct." But am I bad Catholic parent for doing this? What do YA' Think?