What is more important that one Person light the right amount of candles every night of Chanukah or that everyone in the house light (of course I am talking about Ashkenazim)?
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The Mishna Berura (671:10) opts for everyone lighting (mehadrin).
This is assuming that you are only using the minimal amount, your not counting your wife (ishto k'gufo), or your daughters (I can expound on that last point if anyone wishes).
I'm not sure what to do if the kids are not b'nei mitzva: mechanech them in mehadrin at the expense of Rambam's mehadrin min hamehadrin for the bnei mitzva, or have the bnei mitzva do MM"haM and let the kids rely on ner ish u'veiso.