Yorkies are the best breed ever!

As for children, I think as you stated, children can be taught how to respect a pet. I would not consider getting a puppy if you already had small children, not that it can't work. You are doing the right thing by getting one now, so the puppy has time to mature. They can be terrors, but they are also so full of love! Mine will pile on me in the chaise and watch tv. Taking them for a walk is a good means of exercise and a way for them to burn some energy. Good Luck!