HOW CUTE! What a cute first project!
Let me give you a tip on how not to drop stitches, never set your needles down in the middle of a row. In three years of knitting I have only dropped stitches twice and its only happened on projects Ive had on circular needles.
My kids know to stand patiently and wait till I finish the row, and that I only put my knitting down if someone is unconsious or bleeding profusely. "Until I finish this row." Even my three year old can quote it.
Where did you get the pattern?