Kerry:
I would recommend either the
Contemporary Resort or
Beach Club for your family's trip. Both resorts offer proximity to the parks for naps, a Character Breakfast, lots of viewing of the fireworks, along with great pool amenities and sleeping accommodations for a family of 5.
The decision between the two will come down to which park(s) you think your family will visit most and your budget. The Contemporary is a 12-minute walk to Magic Kingdom or 20-minute ride on the monorail. If you choose a room with a theme-park view, you can enjoy the Independence Day Fireworks at the Magic Kingdom both on July 3 and July 4 either from the park or from your balcony! In the lobby sits Chef Mickey's providing lots of access to Disney's Fab Five (Mickey, Minnie, Donald, Pluto, and Goofy) so that you can save your FP+ selections to meet princesses or get a good seat for the parade.
Beach Club is a 5-minute walk to the back gate of Epcot and a 20-minute boat ride to Disney's Hollywood Studios. Its
Cape May Breakfast Buffet features Minnie and Goofy along with a few other friendly faces in their fun beachwear, but typically not Mickey. Its pool, though more compact than the Contemporary, provides a well-themed pirate slide, toddler pool with sand to make sand castles in "clean" water, and free inner tubes. I prefer the bathrooms at the Beach Club because the vanity sits separately from the shower in comparison to the Contemporary's bathroom that, although has a privacy toilet, doesn't give me the same freedom with my large family. Because your children are younger, though, this may not be an issue.
Wishing y'all a magical vacation!
Whitney