Google's Picasa is a free download to install on your computer. It monitors your computer for new photo's and builds your own photo album with all the tools a family is likely to need.
You'll find it teaming with easy to use essential functions such as redeye removal, croping, converting and rotating and for those wanting to do a bit more you'll find more advaced featers such as backup, movie making, web albums and face recognition.
This software really does do everything you want but even more importantly it does it well in simple steps suitable to all ages and abilities.
Visit Picasa's dowload page
Google describes: Transfer, find, organize, edit, print, and share images, all with this easy-to-use product. Watch Picasa automatically organize all your pictures into elegant albums by date. Having all your photos in one place means no more time wasted searching for folders or files. The program works with JPEG, GIF, BMP, PSD, and movie files and is compatible with most digital cameras; it detects your USB driver and imports pictures into albums. Editing tools include cropping (standard or custom), removal of red-eye, and enhancing--even switching from color to black and white. Create slide shows set to your MP3s. Integration with Picasa's free Hello instant picture-sharing software lets you share hundreds of photos in seconds and chat in real time. E-mail photos with Picasa's built-in client to take the guesswork out of compressing images, and order photo-lab quality prints or print at home with no mistakes. You can also make instant backups to CD (or to other hard drives) of your photo collections, to organize your photos using labels and stars (just like with Gmail), to write captions for all pictures, and to organize videos as well as pictures.