Son's Friend in Piggy Bank

No, I wouldn't allow the child back in to play. We had that happen many years ago with a family that used to live down the street....except this kid took 300.00 out of my coat pocket. The parents said they'd look into it too, but I never saw the money again.
I don't let any kids play in my house anymore <unless its my girlfriends daughter or somebody close like that>. Its a good thing I stuck to that rule too cause the boy that took the money.. He and his brother have been in and out of juvie over the years.

I agree with the two other posters. At 5, the friend probably actually thought they were garbage - similar to any crumpled paper he might see. All you should do is stress to your son the value of money and use the anecdotal story to suggest the friend's parents do the same. It's actually quite humorous - two 5 year olds finding crumpled green paper "garbage" in a piggy bank. In fact, how tidy of them to throw it out! :)
Sorry you're out $60, a small price for a great lesson IMO.

Yes, if the boys are friends you should still have him over to your house. At the age of 5 I don't think the neighbor was being malicious or trying to mislead your son. It's unfortunate that the money is gone but you should use this as a learning opportunity for everybody. Talk to both boys about money and open a savings account for your son so that when he gets more paper money he can put it in the bank and it won't get lost. There really isn't anything the neighbors can do, other than teaching their son about money, i don't think they are responsible for replacing the money especially as you don't know how much was thrown away. Just hope that it made it's way into the hands of someone who really needed it.

they are so young that i dont think anything was meant by it. i would try to teach them that money has value and we dont throw it away. and i would keep my money in my bedroom from then on also.