Shared itunes account

So I've had an iPhone for a while and my kids have had an older iPod Touch. We've been sharing a user name on iTunes. They have purchased a number of apps that they would like to retain.  I've just bought them both their very own latest generation iPod Touches and would like to set them up properly.  The goals are:
1) To have them be able to continue using the Apps that they have already purchased.
2) To let them have their own names on the iPods (It's calling them both "John" which is my name.
3) Long-term I'm thinking they will eventually leave our home and want their own iTunes account.
So what are my options? This is all very confusing to me. Should I set them up their own accounts now and lose the huge investment we've spent on apps?  Or should I continue sharing my account?  And how the heck do I rename their device with their own names?
Help.
Thank you all and Merry Christmas!
John

Ok I figured out item #2 since it will let me manually rename their ipods. But still don't know the others.

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    epfegn wrote:
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