diff --git a/mongoengine/fields.py b/mongoengine/fields.py
index e9a5e4b2..9062333e 100644
--- a/mongoengine/fields.py
+++ b/mongoengine/fields.py
@@ -944,7 +944,7 @@ def key_has_dot_or_dollar(d):
     dictionary contains a dot or a dollar sign.
     """
     for k, v in d.items():
-        if ('.' in k or '$' in k) or (isinstance(v, dict) and key_has_dot_or_dollar(v)):
+        if ('.' in k or k.startswith('$')) or (isinstance(v, dict) and key_has_dot_or_dollar(v)):
             return True
 
 
@@ -977,7 +977,7 @@ class DictField(ComplexBaseField):
             self.error(msg)
         if key_has_dot_or_dollar(value):
             self.error('Invalid dictionary key name - keys may not contain "."'
-                       ' or "$" characters')
+                       ' or startswith "$" characters')
         super(DictField, self).validate(value)
 
     def lookup_member(self, member_name):
diff --git a/tests/fields/fields.py b/tests/fields/fields.py
index 0f325849..b09c0a2d 100644
--- a/tests/fields/fields.py
+++ b/tests/fields/fields.py
@@ -1698,6 +1698,10 @@ class FieldTest(MongoDBTestCase):
         post.info = {'title': 'test'}
         post.save()
 
+        post = BlogPost()
+        post.info = {'title' : 'dollar_sign', 'details' : {'te$t' : 'test'} }
+        post.save()
+
         post = BlogPost()
         post.info = {'details': {'test': 'test'}}
         post.save()
@@ -1706,12 +1710,15 @@ class FieldTest(MongoDBTestCase):
         post.info = {'details': {'test': 3}}
         post.save()
 
-        self.assertEqual(BlogPost.objects.count(), 3)
+        self.assertEqual(BlogPost.objects.count(), 4)
         self.assertEqual(
             BlogPost.objects.filter(info__title__exact='test').count(), 1)
         self.assertEqual(
             BlogPost.objects.filter(info__details__test__exact='test').count(), 1)
 
+        post = BlogPost.objects.filter(info__title__exact='dollar_sign').first()
+        self.assertIn('te$t', post['info']['details'])
+         
         # Confirm handles non strings or non existing keys
         self.assertEqual(
             BlogPost.objects.filter(info__details__test__exact=5).count(), 0)