I wish I had more bluegrass to share here on the site, just because much of the traditional kids music sounds so good with a bit of banjo. Here's a video from a group billing themselves as "The Stripey Boys." In reality, it's the British bluegrass group The Rosinators. It's a clean and lively rendition sonically; visually, the animation based on Satoshi Kitamura's drawings is a bit dull stretched out over 4 minutes, at least for the adults. But I think the kids'll be amused enough, and I also like the shout-outs to the different instruments used at the end of the video.
The Stripey Boys - "Old Joe Clark"
If you liked that, there's more...
This video's "Go Along Home Cindy" by "The Bluegrass Babies," but, yeah, the Rosinators are behind this as well. Same concept, different animator.
The Bluegrass Babies - "Go Along Home Cindy"