Hi Carin!
You are an awesome friend! First let me assure you that whichever way you plan their trip, it will be truly magical. That's the beauty of Walt Disney World. There are amazing things to see and do everywhere you look! I'm the mom of two kids, therefore, always on a budget!
My first suggestion would be to have them stay at a family suite in a Value Resort. These resorts are wonderful, and a lot of fun! Transportation from any Disney resort to parks and other areas of Disney World are complimentary.
Value Resort rooms have small refrigerators, so they can keep some breakfast items and drinks in there, and save money on dining out. Disney does allow you to bring in your own food and drinks into the parks. If you are able to do this, it would save a good part of the budget.
You might also want to consider having them purchase a
Disney Dining Plan. There are several plans to choose from, and they are all definitely money savers. Please don't forget to check out the
Special Offers at Disney World. There's always something great to find there!
Please offer your friends my congratulations! I hope they have a wonderful time!