I am starting out and would appreciate advice on what lenses are ideal for families/kids/events in mostly natural settings with some indoor for events and such. The plan is to purchase a Canon 7D (even though I'd love a full frame camera since I'm still shooting film) simply because I'm starting out and can't afford the 5D Mark III. And I keep reading the lens is more important than the camera.
You should also consider the Canon 5DmkII. I know several who have both and find the mkII to be the better choice at half the price. Sure the mkIII is better, but worth 2x as much? Only for some, and probably not someone like yourself (new to the business).
As for lenses, if you are shooting in low light you will need good AF. A 24-70L is a great lens. I had the Tamron 28-75 and it is a great lens, but the AF was not great in low light. The 24-70 was significantly better.
The 70-200 2.8 is another must for event shooters. I use the non-IS lens and don't wish I had the IS very often.
A 50 1.8 ($80) is a must for any bag. The 1.8 85mm is also a good standby for a decent price ($300).
Look at fredmiranda.com for great deals on Canon gear. Many pros who sell their gear, or amateurs who are always swapping out gear. Great prices and very reputable sellers.