"People look and I'm with my husband and they're like, 'Oh, of course. Of course that's their child,' " Hilaria Baldwin recalls of her daughter's behavior

Hilaria Baldwin will support almost any career direction her kids want to take, but Oscar the Grouch’s stand-in is not one of them.

In a hilarious rendition of a story she admits she plans to tell at 5-year-old Carmen Gabriela‘s future wedding, the mother of four recalled a time when her and Alec Baldwin‘s oldest child was just 2 years old and found herself wanting to climb into a garbage can at Union Square in New York City.

“She kept on screaming that she wanted me to let her climb into the trash,” Hilaria, 34, tells PEOPLE’s Celeb Parents Get Real. “And she was like, ‘You’re so mean! You’re a bad mommy! You won’t let me go in the trash!’ ”

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Hilaria Baldwin and daughter Carmen
| Credit: Hilaria Baldwin/Instagram

Hilaria explains that while the situation would be “embarrassing no matter what,” Alec’s star status made it even more uncomfortable for the couple.

“People look and I’m with my husband and they’re like, ‘Oh, of course. Of course that’s their child,’ ” says the yoga instructor. “Like, of course we’re terrible parents.”

“She screamed for a solid 40 minutes after that about how I was so mean I wouldn’t let her go into the Union Square trash,” Hilaria continues, adding with a sly grin, “And I will be telling her that story at the wedding.”

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Hilaria certainly has her hands full even three years later as mom to Carmen and her three little brothers: Romeo Alejandro David, 7 months, Leonardo Ángel Charles, 2, and Rafael Thomas, 3½. A recent event saw her having to tap into her calm nature to handle a spat between her two older sons, when Rafa bit Leo — and it worked in her favor.

“I could have shamed Rafa, yelled at him, made so many mistakes,” Hilaria said. “I was very clear to tell him his behavior was wrong — ‘You’re not naughty, but the behavior is naughty; You’re not bad, the behavior is bad.’ ”

“And then Rafa and Leo started hugging each other and kissing each other, and I saw them fix the situation on their own because I didn’t get in the way,” she explained.