Janome makes smaller models that are great for kids. I bought my son their 1/2 sized blue Hello Kitty model when he was 5. They also have a 3/4 sized one (it's green, believe). It's very similar to their sew mini model, and stitches very slowly, but is a real machine- not a toy. (He upgraded to my old Kenmore when I got my Janome 6500, and is eyeing my machine now- he wants an automatic thread cutter and needle up/down button.
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Lisa