I made albums for each child. Since I started scrapping after they were bigger, I used the photos of them that I had. Luckily I usually printed two copies of photos when I ordered them so each child got their own set of photos. The way I look at it is that each child is part of the family and I wanted them to have a history of our family so I gave them LOs of not only themselves but of other family members too. We have an older child too and I put as many of her little siblings as I can in her albums and visa versa.
I do not make a family album for myself because these are my albums and will live in my house until I give them to each child.
I also have an album for DH and one for his side of our family and one for me and one for my side of the family. The kids can split them up as they see fit later. I also have a heritgae album that houses photos of ancestors on both sides of our family. I recently got a PIXMA printer/copier/scanner so if I run out of things to scrap, LOL, I will make each child a heritage album too.
Since I am making multiple LOs of the same photos I make them similar sometimes and other times the LOs are totally different. I just try to keep in mind the person they will belong to one day and use colors, pps and styles they would appreciate.
Good luck in choosing a way to tackle this.
I am totally happy with what I have done and so are my kiddos. I would not do anything differently as it stands right now. IF I could go back and scrap when they were born 34 years ago for our oldest and 26 years ago for the twins I think I'd make their books just like I did now except they would have MORE photos as digital is so much easier than the old film cameras were. I might document their milestones better such as first haircuts, first tooth, etc.