There are numerous games and learning apps for kids on the iPod from Apple. With cute games like Angry Birds and Fruit Ninja, kids can play age appropriate games and be entertained for hours. Cut the Rope, Robot Unicorn Attack, even Wheel of Fortune are available. Some apps are even available for free.
There are educational apps available that can help teach math, spelling and typing. These can be fun for kids because they integrate the education into a game that kids of all ages can play. Helping you kids learn while having them engrossed in something to give you a few moments peace can make the price of the apps totally worth it.
If you have older kids, there are games available that offer a good challenge. Infinity Blade is a good RPG game with multiple levels and a bit of strategy involved. It can offer older kids a challenge.
The iPod has access to the Apple App store and iBooks. You can download books for your kids and they can sit and read them on the iPad. There are even interactive books for smaller kids that ask them to touch appropriate items, helping them recognize spelling and items.
With so many iPad apps for kids, it is easy to find something to entertain your kids and possible help them learn while doing it. Just remember to turn off the in game purchases to avoid charges on your bill for kids using real money to buy in game items.