How to set up iCloud for a family?

I want to set up iCloud on my families devices. I have an iMac, iphone and iPad and I'm happy for all the information on these devices to be synced through icloud. However my mum and dad also have iPhones and they would like their photos to appear automatically on the imac but not on my iphone or iPador each others phones. My sister also has an ipod nano and we apple tv. At the moment all our devices are registered under the same apple id, is this the right thing to do? If someone could advise me on how to best manage my families data through icloud it would be much appreciated.

There's only one realistic plan: Set up one Apple ID for each person. Any other plan will be a mess. Each person logs on to a different user account on the iMac. Each has his own Apple ID. Each has his own iCloud storage.

There's no option to assign separate "sub-IDs" in iCloud. An Apple ID is one setup for all devices. You can't set up separate iPhones in one iCloud account.

If you want to share data, fine, share photos, share Word documents, but anything purchased on an Apple ID can only be used with that one Apple ID. There's no option to "piggy-back" a second Apple ID onto the first one.

You have to see this from the view of the app developers and the music artists. They can't let people just share their stuff after buying it. There's no practical way to control who gets to share your stuff, family only or the whole world.