How do i make a second phone have a new mac account and still retain its songs?

I have an iphone and my 2 kids and wife all had ipods.  They all used my account to get songs on their devices.  Now they all have iPhone 4's.  The problem is, if they use my MAC account on their phones, they get to keep their tunes, but now I get their reminder and contacts and visa versa.  Is there any way for them to create their own account but still keep the music they purchased?

No, you can't transfer purchases from one Apple ID to another.
However, they can use the 'group' Apple ID in Settings > iTunes & App Stores, but use their 'unique' Apple ID for iMessage, iCloud & Facetime.
This will allow everyone to use the same content for iTunes & App purhcases, but keep their contacts, calendars, etc separate.

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