The standard for the Yorkshire Terrier is "Must not exceed 7 pounds. Occasionally, even those breeders who breed to standard have a larger dog. However, even though they are small, Yorkies are not a purse puppy; they are terriers first and like to explore their environment. Joey's 5 1/2, there's no way he's a purse puppy, but I don't think that's a great size around kids. I personally think the Shih Tzu is a much better dog around children and they will be able to give them those big hugs without hurting them. Another option is the Silky Terrier who is very much like a Yorkie, but it's a bigger dog.
American Kennel Club - Silky Terrier