Can someone tell me how you can change from an individual account to a family account? I just went straight for individual during the initial set up but just realized that since my family all shares the same Apple ID for purchases, that I should've probably gone for that instead. I don't want everyone's saved music showing up on everyone's iPhones.
We'll have to stay tuned on this, there's no official support documentation on the Family plan that I've found (it may be buried in the Terms and Conditions for all I know).
But to
speculate? Family plan will most likely be available to those using Family Sharing - each family member has their own Apple ID and iTunes account. Families who use a single iTunes account can probably use the Individual account, but I couldn't tell you if they'd run into limitations.
Speaking specifically to your shared iCloud account? It definitely pays to get each family member their own iCloud account - each then gets 5 gb of free storage, each will have their own contacts and calendars, etc. In other words, if you'd prefer to have privacy for each family member, this is the way to go. If this sounds appealing to you, first look into Family Sharing (read the support documentation) - if you have kids under 13, Family Sharing allows you to create "under-13" accounts, with additional parental control over kids' purchasing activity (those can only be created from Family Sharing, so setup Family Sharing
before creating accounts for the kids).
One of the downsides of a family using a
single iTunes/iCloud account is that everyone has the same password. I've heard about more than a few families where the kids were able to take over the family's account (not sure I want to explain how, though it's definitely not rocket science or any kind of hack - all they need is the password). Family Sharing allows the parents to lock down access to their personal accounts and info.