Another great thing about the Disney Dining Plan is that all credits are lumped together . A family of four would have 20 table service ceredits for a 5 night stay. They do not break them up into 10 child and 10 adult.
When we go we are going to pay cash for the kids and use all of our credits for adults. This is a pretty common practice that Disney is well aware of and does nothing to stop. It works on sit down meals, but I have heard that they don’t let you split it up on buffet meals.
The dining plan is definitely the way to go. We are doing 3 character meals! If we were paying as we go I think we would do all counter servce and just one character meal.
I don’t know the ages of your kids, but under three get free entrance to the park, free buffet meals, and do not count towards party number for maximum guests per room.
We are going the week before my youngest turns three and will save about $500 by doing so. I also called Disney and as long as the child is two upon check in, they count as a two year old during the whole trip! A nice perk for a child having a third birthday at Disney!