Multiple devices in 1 family...please help!

I am trying to figure out the best method to 'connect' my 3 young kids (ages 5-9) with their soon to be (Christmas presents) iPads & iPods.
Just a little background about what devices I will have to deal with. I have 3 kids, they will each have at least 4 Apple device to ALL connect to 1 family computer / iTunes.
Child #1 ( currently has an AppleID)
- currently has ipad
- getting new iPod Touch for Christmas
Child #2
Getting new ipad for Christmas
Child #3
Getting new ipad for Christmas
I would like them all to be able to share: Apps, Movies & Music
They do NOT need to share anything else such as contacts, photos etc.
I would like them to have individual access to iTunes gift cards (not share iTunes gift cards)
My biggest frustration with reading LOTS of online info on this subject...is wether or not to create 3 individual Apple IDs for them or to share 1 ID!? Do I want them to share an iCloud account or have individual iCloud accounts!?
Any advice / help would be GREATLY appreciated. I'm looking for someone to 'hold my hand' & walk me through the process step-by-step or point me to a website that already exists that will help me with this scenario.
Thanks in advance!

We do this in my family now.  We have one account for purchases, so it is used to share music and apps (I think that is in Settings/iTunes & App Stores).  Each iDevice has this configured.
Then, each of us has our own iCloud account that is configured under Settings/iCloud.  That then allows us to have our own Mail/Contacts/Calendars/Reminders/Safari Bookmarks/Notes/Passbook/Photo Stream/Documents & Data/Find My iPhone/and Backup.  That Backup piece is pretty sweet and comes in handly if you replace your iDevice.  You can just restore from it.
So we all share the Apple Store account but we all have our own iCloud accounts to keep the rest seperate or things like you mentioned are a nightmare.
In answer to what iCloud does for you: http://www.apple.com/icloud/features/
Think of it as an internet based ("cloud") area for all of those items listed in my response.  What you need to remember is photo stream only maintans the last 1000 pictures so don't count it as a complete backup solution for your pictures.  Even though I rarely sync with a computer these days, I do still try to sync my phone with iPhoto (I have an iMac) so that I have copies of all of my pictures.  1000 may not stretch as far as it sounds.
Message was edited by: Michael Pardee

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