The dog must be able to safely live within his surroundings.  Mine are socialized with children every chance I get.  Mine will bark as the kids pass on their way to & from school but it's not deeply serious.  Around here the kids are the ones who seem to know how to behave around dogs.  They will say, "hi puppy" or whatever but they keep going.  No teasing, taunting or nonsense.  The adults are another matter.  If I didn't know better I'd say I live in Idiotsville. 

I don't see anything wrong with socializing with children.  From a security standpoint, small children are rarely your problem.