Hi Victoria! Welcome to the DIS!
We are a family of five and when we purchased DVC, we were a family of four and purchased for that size family. Well, lo and behold our youngest surprised us tremendously! <a href='http://www.smileycentral.com/?partner=ZSzeb008' target='_blank'><img src='http://smileys.smileycentral.com/cat/15/15_2_129.gif' border=0></a> We could not afford add ons, so we have been creative with our point management.
We used the one bedroom until our youngest was three and then we went to two bedrooms which are really really wonderful! We do things like banking/borrowing, leaving for the weekends to preserve points, going in different times of the years, etc.
Figure out how long you want to vacation a year and buy points for the two bedroom for your vacations. The two bedroom will be fantastic for your family especially when the kiddos get bigger; certainly right now, you don't need the "space", but you will when they get bigger...especially the bathroom space!!!!<a href='http://www.smileycentral.com/?partner=ZSzeb008' target='_blank'><img src='http://smileys.smileycentral.com/cat/10/10_4_2.gif' border=0></a>
Good luck in your decision and hope to see you around the DIS more!