looking for tips on kids fishing setups

[UphillHabit]

I'm really new to fishing and thinking about taking my 5-year-old out for the first time. I've seen some kid-sized rods at a local store, but I'm not sure if that's the way to go. What kind of setup do you usually use for a simple, fun day out on the water? Any particular bait or approach that works well with little ones? I want to make it a great first experience for my kid, but I could use some guidance since I didn't grow up around fishing.