How do you setup ios5 for your kids?

On ios4 I used to use my apple id for my iphone and my two kids iphones.  We each have seperate profiles on our mac so we could backup there.  I loved that I could log into 'locate my iphone' and I could see where my kids are.
ios5 however poses a new challenge with the over the cloud thing.  
I need help in figuring out the following please:
  1. Do I get them their own applie ID's or can I use mine only and keep our data seperate?
  2. If I have to get them seperate applie id's how do control the app purchases?
  3. And how do you keep control of the location thing so you can check on them?

Reading about others experiences, if you don't get them separate apple ids for each of them, all your data will be merged. Contacts, photos, etc.
This is what I did for my husband and myself. We normally purchase all apps and music under my id. When I set up his phone I used an id that I had previously set up for him. I think I would advise that you do this on your computer before actually setting up the phones. A LOT of people are having issues with the IDs and I wonder if they were set up and verified BEFORE setting up the phones if that might not help some of the issues. Anyway, I set up his iCloud with HIS apple id. Then I checked the app store (you should check iTunes too) - it had signed him in there under his ID, but I signed out and signed BACK in under my ID. Then checked the iCloud settings. His ID was still there for his iCloud backups.  If you don't want to worry about all that sign in, sign out business, just don't tell them the passwords to their apple id and leave it signed in the stores. Then you'll have to input the password before any purchases.
For the location thing, try Find My Friends. It's free and from Apple. Everyone needs the app on their phone. I set ours up today with no big deal. You need the email address that you use for each of their Apple IDs to be in your phone. Within the app you send a request to them that they have to accept, and vice versa if you want them to see where you are. It says in the description of the app that it has "simple Parental Controls". I'm sorry but I don't know what they are.
Good luck and I hope this was helpful!
Edited to add: When I say everyone needs the app on their phone, by that I mean - you and all your kids not the entire iPhone world. LOL
Edited again: Sorry, I am a curious person. So I looked into the Parental Controls. Here is where you find what to do: Open Find my Friends. Along the bottom of the screen you'll see "Me", tap that, then at the top of that screen you'll see an account button. Tap that. At the bottom you'll see Find My Friends Help, tap that. Then tap Change Find My Friends Settings, then tap Set Up Parental Restrictions.
This will give you all the instructions on what to do. You are basically setting a password that will not allow the child to make any changes. Such as follow anyone else or allow someone else to follow them. Also it will not allow them to hide from you.

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