Paul,
This site is a great resource for lightening the load.
My advise is to weigh all your stuff and make a list of all your gear. If you post it in the gear list thread people will help you trim it down quickly.
Also, if money is a concern, don't go and just start buying gear based on weight and opinoin. Consider your goals for backpacking. Some people engage it as an athletic challenge like adventure racing. They are likely the ones pushing the limit on 5lb base weights. Some people choose to carry heavier loads for more comfort like a bigger tarp or a pillow. Others may have different miles per day in mind. These factors change what you may carry backpacking.
Also, consider having multiple kits. or combinations, for different activities. I just took my 6 year old son on his first trip last week. I chose to use heavier more durable gear. Some 6 year olds may not have the ability to be careful with delicate gear, my kid definately does not. I kept some of my standard backpacking gear for this occasion. With heavier gear I needed a heavier pack, so it's a good thing I kept my good old Osprey pack. When I say heavy I'm talking about a 35lb load for 2 people. I made him carry his clothes and sleeping bag.
While "heavy" is realitive, you could definately do better than a 7lb pack and a 5lb tent, even if you are hiking with kids.
Some people on this forum go with little kids and use a UL kit. I can't afford to replace gear so I choose not to use all my "good" gear when the kids.
Going UL does not have to be expensive. The Gear Swap thread is your friend. If you are really on a budget, keep an eye on the MYOG thread. It is full of clever ideas.
One more thing, read read read, hike hike hike….. repeat.