Youngest DD was the only 5 yr old in our state the first year she competed (level 2.) She surprised everyone, including the coaches when she did as well as she did and ended up winning 1st AA at state. She understood the awards and placement to a degree as her sister had started competing the year before, but was just always happy to get a medal. (Every meet we went to that year everyone got a medal) We talked about having fun and that was the point as I didn't realize she would do so well up against the older kids. At that age, it truly is about the fun. I second the advice above about going to the bathroom before as I noticed some level 2s at our home meet last year from another gym that looked super young that had peed themselves. It was quite the clean up and put a few events on hold. Also, if she is upset, ice cream is always a good thing.