Soon after I learned to knit, I taught my then-5-year-old daughter to knit as well. She picked it up quickly and liked working alongside me, albeit only for a few minutes at a time :-)
But later that year, I got pregnant, got nauseous, and then quit knitting for 1-1/2 years because I had such a strong mental association with knitting and nausea. And my daughter, who is 9 now, stopped knitting altogether too. It surprised me, then, when she asked me to help her find a project to knit for her teacher as part of an end-of-year gift. She told me that after watching Mr. Magorium's Emporium, the teacher's young daughter fell in love with sock monkeys, so she wanted to knit them a sock monkey. This was not a very realistic option given our time frame, so we settled on a sock-monkey-inspired coffee cup sleeve. She set to work and knit this up gradually over the course of a couple of weeks. All I did was help with the sewing.
If you've got time to monkey around, you can check out more details on Ravelry and in the gallery.