My 7 year old was using my Marlin XT until I purchased the Rascal, although only with a bipod and with the butt through his arm pit. With the Rascal he can now shoot from the standing, kneeling and hold the rifle without the use of a bipod on the ground. The closest rifle to the Rascal would be the Cricket but that has a bolt that requires an extra step to cock the bolt and no ramp to assist with loading.
Any thing realistically can be used but as others have said whats $300+ on a tool that should set them up for success later on down the track. Check out my photos of my 7,5 and 2 year old in the prone position with the Rascal in the "Savage Rascal" thread. Should help with comparisons as your kids are 7 and 5?
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