grandtanteJE65
I don't remember ever being insulted as a child by being called or addressed as young lady - young woman signified that I was in hot water!
I was thrilled at the age of sixteen when a shop assistent asked me, "Can I help you, Miss?" I felt so grown-up.
But that is the point, isn't it? All children want to seem older than they are and are looking forward to the day they will be grown up.
No older person wants to be considered "old" or "elderly" these days, so we tend to be hurt or take offence.
In no European country is it considered polite to address anyone as "Old man" or "Old woman", so if your granddaughter speaks English, just say, "Please say Grandma, (or whatever she should call you) when you want to attract my attention" and then ignore it. It is a term of respect in many Asian languages, and to a lesser extent it may be in some Slavic languages as well, but I doubt this is relevant here.
At five, she may be deliberately trying to rile you, but is more likely just experimenting with words, so ignoring her until she addresses you as you want her to might be the best policy.
But ask yourself, is it really worthwhile to make an issue of this?
In a lot of countries, if people don’t know your name, they will call you sister, brother, uncle, auntie, grandmother, grandfather, according to age and sex.
In Oman and Kenya when a lot younger I was often addressed as ‘sister’ - I thought it was lovely.