Five years is an early age to read writing. When I was a kid myself, at least where I lived, most kids would begin at 6-7 and being competent at age 5 would have been the mark of a particularly quick child.
I had dyslexia problems as a child myself (I was so “messed up”, I confused right and left, east and west, and never learnt to tie my shoe-laces properly, heck, I still can’t) and they were eventually overcome, most of them (except for poor hand-writing due to impaired fine motorics). As in, I still make “typos” in hand-writing and don’t have consistent letter shapes and it isn’t particularly legible, but spelling etc. is not a problem. It has long stopped being, I believe due to reading a great lot (I think that reading a lot in childhood is a necessary step in preparing people to write competently; without this not even an MA degree will help much at later stages in life) and not being punished by my family and teachers but treated with understanding and love (any child with this kind of problems is guaranteed to go through a lot of stress as it is, if my own experience can be any indication). There were no financial expenses in my case and only very limited contact with a psychologist, if any. Maybe two or three visits in my lifetime as I recall, one of which to get a nice certification excusing me of any hand-writing penalties.

On the other hand, some people had to go through a lot of visits with psychologists, although those were free of charge, which I presume is not the case where you live.
Maybe I’m focusing on a minor issue but I think it would be important to get, in time, this kind of certification that I mentioned a while ago in order to make absolutely sure that no teacher is capable of inflicting penalties on the child’s written assignments even if he wants to (which shouldn’t be the case but sometimes you run into uncooperative people). It’s hard to get a good GPA if they give you an F for illegility or some such.