I try to impress upon my children that we work very hard for our money and should think very hard before we spend it on things we don't need. So the answer is YES. Five dollars is a lot of money. One dollar is a lot of money. It's all relative depending on how much money you have or don't have. How much you owe or don't owe.
Finances are a tricky thing to teach young kids.
If you're searching for ways to teach your kids about money, I can recommend Dave Ramsey's book for kids. Ramsey is a "get out of debt" guru. He's a Southerner, and he's very Christian -- which might turn some people off. But if you're as interested as I am in teaching our country's future more about money and financial sense than we ever learned as kids, he's your man. You may want to check him out online and see for yourself if he's got the right message to help you answer your kid's money questions.