Small dogs bark a lot. There is only one breed of dog that doesn't bark and that is the Basenji. They can't bark. You can train any dog to bark less, but you can't guarantee it. Small dogs have to be carefully considered with small children. They are excitable and easily broken. Are your kids very young? Do they tend to get rough with animals. If they do, your best breed is stuffed. You should research any breed before getting it. Daschounds tend to pee when excited, Chihuahuas get very possessive. Pomeranians have legs that are so delicate they break VERY easily. Cocker Spaniels are the small breed dog MOST likely to bite someone in the family. (Dalmations are the most likely large breed dog.) Different dogs meet different family needs better.
http://www.akc.org/future_dog_owner/find_breed.cfm can help you get more information on what type of dog you want. Personally, I'd go with a mutt. They tend to be less inbred and more stable than the highly pampered purebreds.