I think five is a great age to be teaching your kids the difference between real and make believe. One site that my girls used to love had Tina's World.
-------------------
It's Tina's World la la la la la la
It's Tina's World la la la la la la
Is it real?
Or is it make believe?
It's Tina's World la la la la la la
------------------
Hello! I'm Tina! I like telling stories that are make believe, but I also like telling stories that are real.
Things that are make believe couldn't really happen. Things that are real could. For instance, when I tell stories about being a flying princess, those stories are make believe. But when I tell stories about going to the store, or what I did at school, those stories are real.
Here's another story.
I was flying around on my pet dragon, when a giant vacuum cleaner started flying after me. So I made myself invisible, and the vacuum cleaner flew right by me. Do you think that story is real? Or is it make believe?
Real ...............................
Make BelieveRight! That story was make believe. Pet dragons aren't real, and I can't make myself invisible.
(Get one right, and you get to pick out a treat for her little dog Pepper.)
Here's another story. I was at the store with my mom, and I saw some strawberries. Mom said they were too expensive, so we bought bananas instead...
http://www.earobics.com/gamegoo/games/tina/tina.html