Australian Shepherds are highly intelligent and energetic dogs that generally interact well with children, especially when socialized early. Their natural herding instinct can lead them to herd young family members, which includes nudging or chasing. While this behavior stems from their working dog lineage, proper training can help manage it effectively. Aussies are also protective and playful, making them good companions for active kids. However, their high energy levels require supervision to ensure interactions remain safe and positive for both the dog and children.