AppleIDs are like social security numbers. Everyone should have their own. And at this point, probably be issued one at birth.
Once everyone has their own appleID, then you can decide whether to include them in your "family" as
@Fireproof! mentioned.
How a lot of this confusion started was that once iTunes became so popular and everyone in a household had an Apple device, they didn't want to have to buy a song 5 times so the spouse and kids could all have it. After all, when you bought a CD, it wasn't only the purchaser that could listen to it. So frequently families would share an AppleID so all the purchased music (and eventually Apps) would be available to everyone.
Then iCloud came along to sync personal data (contacts, notes, email, texts, documents, etc.) between devices. Lots of people didn't realize that this was always intended to be tied to an individual or that it was
separate from the iTunes login, so they did what they did with iTunes accounts - the whole family signed in to the same iCloud account with the same shared iTunes credentials. Then mass "Why am I seeing all of my spouses texts??" confusion began.
Big confusion point: You can actually be signed in to one account for iTunes and App Store and a different account for iCloud.
Therefore it
is technically possible to share an AppleID for purchases while still keeping all of your 'personal' data separate by using a shared AppleID for Settings->iTunes & App Store and an
individual AppleID for iCloud. However this is still bad practice because anyone signed in can buy stuff at any point. It's like everyone having access to your Amazon account.
So Apple then came up with Family Sharing where you can designate up to 6, I think, other AppleIDs to be considered part of your Family. Then the AppleID who started the Family can designate Adults and Children and what they can/cannot do and things like if a child wants to purchase an app, one of the Adult accounts would get a notification asking for permission. It also allows developers to designate that their app can be purchased once and used on all devices within a family.
@servenvolley - what you should do, IMO: Get everyone to sign up for an AppleID. Have them sign in to iCloud on their devices with that ID. That will get them to where they each have their personal data separate. Now you have a choice:
option 1) You have them also sign in to iTunes and App Store with their new Apple ID then you add that Apple ID to your "Family". At this point any Apps you bought before that are allowed to be 'family shared' will still be available to them (they might have to download again). Any apps that are not allowed to be family shared will have to be re-purchased by the user. For Music... Any music that was purchased under your AppleID will not be available to them unless you sign up for an Apple Music family plan.
option 2) *this is still not ideal* you have them still stay signed in to
your Apple ID for iTunes and App Store. The issue here is that anyone on this account can make purchases as if they are you. But everything they have now would continue to be that way. Eventually though this will become unsustainable as they go off and have their own families, etc.