I am sorry , lovetoplay, that I missed your post to reply.
I my experience in teaching *young students* at the ages of 7 years old and under, I do not even approach technique because it is hard enough for them to acquire the motor coordination. So I just let them strike the keys as they get used to how and feel to push down each key. That is exercise enough for a young student. Then the ability to comprehend varies with each student. So what I do is let your young student play, play and play. The black keys are elevated which makes it easier for the students to play on and yes, they will have the flat fingers. But, after awhile the fingers gets more used to the key action. Their little fingers will move along and just show them how you play and they will imitate what you do. I do the fist exercise(open and close) a few times before they play. This helps them to recognize how the fingers and mind have a connection. And this takes time so that eventually the flat and collapsing fingers will slightly curve for proper finger action.
Also, another exercise, is the finger-tapping on a flat surface(a table)and I have them do each finger to lift and go down, lift and go down. This facilitates the independent finger action. I have a list of a few finger exercies, off and on the keyboard, for young students to do. And they are fun. And a parent will need to know those to help their child to learn the finger exercises. It gets their attention before and during the lesson when I find them not paying attention.
When the student begins to recognize some of the notes, with the middle C position, A, B, C, D and E. Then introduce the Primer Level of Fingerpower, and I used these books for all of my beginner students. They go through Level three and then I begin on Hanon. I know Fingerpower goes up to Level 6, but I find that it's a waste of money because after Level 3 Fingerpower, Hanon contains what the Fingerpower level 4-6 has. For a young beginner, the technique will come along through the pieces that they learn; some of the passages of a piece can be repeated a few times.
best wishes,
go12_3