A big congratulations! As you know I love dogs. I agree with all the suggestions above. If you want to allow the dog with the children let the dog be the judgement of when and how long. If she wants to leave let her leave. I say it like this because I have gates at the top and bottom of stairs so "when" she goes to the stairs I go right away and open the gate. As for obedience training, IMHO basic obedience it a must. More is better but basic is a start on the right path. Your two children must be soooo excited. Congratulations on them being new dog owners.