I read the rules for this when I began because I provide care for my granddaughter, and didn't know if she would "count." You are fine as long as a parent is there with her own children. You have 3 dck's and she has 2, so you are fine. Your children do not count as you are there with them, and her children don't count if she is there with you. I discovered that my granddaughter doesn't count if my daughter is there, but I need to count her as one of my 5 if my daughter leaves the premises.