Need Advice on Setting up a iPod Touch for a Child

My 5 year old daughter was fortunate enough to win a iPod Touch 4 in a school raffle. I have currently setup the device and tied it to my Apple ID so I can easily load the apps I have previously purchased (for her to play with on my devices) and so I can control her settings, access, etc.. The problem arises when I try to message or connect via Facetime to her device. Essentially I am trying to connect to myself and sometimes my iPhone connects back to itself, to my iPad, or her device. I would love to connect to her directly and could establish an Apple ID for her and that device but then I lose access to the Apps that I specifically purchased for her for use on other devices. Does anyone have suggestions on setting up devices in the same household so that they all have access to the same purchased content but still have unique IDs for wifi messaging and Facetime?

Also any advice on controlling content, tracking, and access related to a young child using this device. I have enabled all the content filters and set them to the appropriate levels but any additional tips would be welcome.