I have a 5 yo granddaughter also, and she has decided her sewing room name is little scissors (she names herself according to what she is doing, her name is Izabella, everyone calls her Bella, but at soccer her name is Izzy. I have no clue how she comes up with this stuff). I have an old metal desk that holds my cutting matt and she has one drawer that is hers. It has a pair of small scissors, glue, paper, and markers. The paper and markers are for when she feels like drawing, cause "you never know when a picture will pop right into your brain". So I dump my larger scraps in there for her and she designs her own squares, I will give her a 12 X 12 square and we (I) applique on the scraps with decorative stitches. I have not moved up to giving her any needles yet, as I know this will create a blood donation of some sort, but have been keeping an eye out at goodwill for a sewing machine for her. She's very good at guiding material for me and for pressing the foot pedal. Oh and we glue little embellishments onto the sqare she's made. She takes them all home at the end of the day and uses them with her Barbies, I think as princess capes.