Is your 5-yr old exceptionally good with her hands and following instructions? I have an almost-6 yr old, and he's still too young. I think 7 or 8 is a more typical age to start. I got my son Knitting for Children for Christmas, and decided to put it away for a while. You could try finger knitting or get her a knitting mushroom. That's maybe a simpler start, and there are kits available with lovely yarn, and books on corking to have ideas for what to do with all those long cords she'll be making. I got ds a pot holder loom from Harrisville for Christmas. I think he'll be able to handle that, and it's a similar craft.