Does everyone need to use the same Apple ID/password for iTunes & App Store in iOS 8 Family share?

I just set up Family share on my 5S and my wife's 5, both running iOS 8. I am the organizer.
In order for my wife's purchases to be charged to my CC (per Family Share setup), does she need to be signed in under my Apple ID and password under Settings -> iTunes & App Store? Or, can she use her Apple ID (that she used with her previous App Store purchases)? Additionally, if she makes purchases in iTunes or the App Store under my Apple ID, does she need to enter my password?
If she's logged into "iTunes & App Store" on her phone, using her Apple ID, will it work?

Well thanx to your answer I sure did just sign out of my old id, & now it's working! Thanx a lot IIIaass, you saved me from having to deal with anymore frustration! Thanx IIIaass!

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