Xbox Live membership and points - info sought

[machinist]

I'm new to Xbox, and have just bought the Xbox360 Slim 250GB for me and my family.

• What is Live membership?

• What are MS points for?

• Do I need both?

• Does each member of my family need a membership each? I assume that if they're young like my 2 kids are then Live membership would be pointless?

Any help appreciated. Thanks

 

[machinist]

OK thanks all.
I reckon I'll stick with points for now, no need for Live.