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Swiss Half Fare Card - worth it?

We are a family of 5 (2 adults, 3 kids age 12, 10, 8) and will be in Switzerland with a car for 3 days and 2 nights, staying in Interlaken. We plan to go to the Shilthorn, and explore the mountain towns of the BO. From what I read, if I get 2 Swiss Fare Cards, all 3 kids will travel free, and the 2 adults get 50% discounts. Is that correct? No fees at all for children?

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Yes, that is correct. Since most of your planned activities involve the mountain towns, consider staying in one of them. You can park your car in Lauterbrunnen and stay there or in one of the car-free villages such as Murren or Wengen.