Like Tiff and Angelan said you just want to ignore the behaviour, any contact from you will just be rewarding the dog for the unwanted behaviour. Any attention is good attention for a dog (in the dogs mind)
Don't give the dog any attention until it is calm and quiet and that will reward the behaviour you want.
Also see how your kids react when they wake up, if they are anything like my kids they will be in a mad rush to get to the dog first thing in the morning, they will be hyper-excited and whip the dog up into a frenzied state the second they make contact. First contact needs to be calm (from everyone in the house) and the dog shouldn't get any attention while it is in a frenzied state. No happy excited tones of voice either, save the praise for training or when the dog does something you want it to do.
You will have to train the kids to show some restraint and keep calm every time they greet the dog after any time away from the dog. It's not easy to have young kids and a young pup but you will do it with a bit of patience.