Hello ssol,
If you live in the U.S.A. I think it would be preferable your kids learn Mexican Spanish due to the probabiliy that they most of the time will speak with Mexicans. I could add that the difference among different variations is not so big, and it's not a problem if you teach e.g. Mexican Spanish and they speak with a Peruvian or a Colombian. The most important difference is the conjugation of the verbs, due to there are differences among Spanish from Spain, Mexican and Argentinian Spanish.
Talking about "street Spanish", I strongly recommend your kids learn "standard Spanish", I mean, the academic Spanish.
Every language can be represented by a pyramid in which we can put every variation of that language, but "standard" is always at the top of the pyramid. People who learn a "standard" language, can go to the bottom of the pyramid and talk, e.g. slang, but the opposite (be on the bottom and try to speak the "standard" language) is very difficult.
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Julio Arturo Torres Jaubert
English-Spanish and French-Spanish translator
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