So YOU set up their iPods with YOUR appleID, and you're upset with apple because it's working exactly the way it's supposed to???
You need to sign out their devices from iCloud, iTunes, and FaceTime (all in Settings App, I believe.)
Then sign them back in using only their personal AppleID (not yours).
THEN, on YOUR phone, set up your ID as the master for a family. Next you can go to their phones and request to join Family Share, which you'll have to approve with a...