Welcome to the hobby Eric,
I would like to agree with everything saide previously, but to also expand on the topic. I firmly believe that jumping into amateur astronomy by purchasing a big telescope with all the 'bells and whistles' will be detrimental to your learning of the night sky, and a turn-off for your children. From my experience and the experience of others I have known I have put together a 3-stage 'plan' which I believe if almost fool-proof. By all means you do not have to follow the stages, but each stage builds on the experience and knowledge of the previous one. I do not know what level of knowledge you or your children are at, at present, so I will assume you are just starting out, so please do not be offended if I suggest things which are too basic.
Stage 1:
Equipment: Buy a Planisphere, perhaps a basic book and your own eyes. Seriously Eric, this is the best way to learn about the night sky. A good planisphere wil cost you about $20 - any planisphere will do but I like the plastic 'Phillips' brand such as this one
here. A planisphere will serve two very important purposes.
When you are starting out in amateur astronomy, the first hurdle to overcome is understanding what I call the 'mechanics' of the sky - how and why the stars rotate, where is up-down-left-right north-south-east-west etc., A planisphere is a little square, flat device which you rotate according to the day of the year. As you use the plansiphere, you will see how the stars move across the night sky, and why different stars and constellations are visible at different times of the year. You will also very quickly come to understand how to translate a star chart on paper into a view of the night sky.
Take the kids out and form fun exercies around an evening. Look for the constellations and other patterns in the sky. See if you (and your children) can notice the movement of the stars over the course of a few hours of the evening. Notice how some stars set in the west while others peek above the horizon in the east. Believe me Eric, this is a crucial step for anyone starting out. It may sound boring now, but this is a fundamental step and you will learn . You can spent severl weeks or several months doing this.
I mentioned at the start of this section a 'basic book'. I recommend a good Aussie book called 'Atlas of the Southern Night Sky' by Steve Massey and Steve Quirk. Although most of the book will be used later on in the following stages, there are some excellent chapters for beginners inclusing the Moon and the planets, and some very-well explained sections on what I called the 'mechanics' of the night sky. I do not own this book personally, but as an intermediate-level amateur astronomer who uses far more detailed star atlases than this one, I intend to buy it still. And if you get a book such as this, it will be an investment.
Stage 2:
Equipemnet: Binoculars and a tripod.
Again, another investment which you will uses for many years. Please, please refrain from buying 'department store' binoculars. Go to a telescope shop - others here will recommend some for you. A good pair of binos on a sturdy tripod will enable you and your children to see some great Moon images, Jupiters 4 inner Moons, and many bright Deep Sky Objects (DSO's).
Remember as Summer approaches some of the old favorites will appear, M42 (Orion Nebula). When you buy binos, they will further enhance your knowledge, you will learn what their 'actual field of view' - i.e. how much sky you are actually seeing in the view. Again, this you can translate into what you read on star charts, and this knowledge goes towards a fundamental skill which I think everyone should be able to grasp: "star hopping".
By now, you will be able to locate the constellation in the sky, and have a basic knowledge of when and where to find them, and even know where some of the brighter 'interesting' objects are - and find them in your binoculars. You can spend weeks, months or years doing this - the decision and the pace is purely up to you.
Stage 3:
The telescope. This is where you will get a dozen different opinions but I would lean towards a Dobsonian Telescope, as has been advised. Perhaps a 8, 10 or 12-inch? You can jump into a all-singing, all-dancing telescope with GPS, tracking etc, but with a Dobsonian telescope you get more 'bang for your buck' and with the fundamental knowledge you have achieved in the previous stages, you will be able to move the telescope around without the aid of (expensive) electronics.
Eric, I hope this makes sense and I do not mean for it to sound so clinical and rigid. I personally believe that these steps will build a good foundation of knowledge for you and while many others will expand further and offer more advice, you will not find many amateur astonomers who will disagree with the fundamental process I have outlined.
Regarding photos, this is an expensive arm of the hobby, try not to go down this path just yet. Just sit back and learn about the heavens first. And always keep in mind that those images you see in many books are NOT what you will see in the scope.
Please do not stop asking questions in forums such as this one. Myself and others will be happy to elaborate on our advice.
clear skies.