Next year my family will be taking a trip. I have two daughters who will be 6 and 4 when we go. I am stuck deciding on what resort we should stay at. Originally we were supposed to go in December 2020 but canceled that trip. I have continued saving so have a little extra that we can afford a different resort than originally planned. I am considering these options Caribbean Beach, Art of Animation family suite, Wilderness Lodge, or the cabins at Fort Wilderness. Would one be better than the others for children and it will be their first visit?
Are you still going in December? If so, definitely stay at Wilderness Lodge if it's within your budget. It's widely considered to have the best Christmas theming of all of the Disney resorts at that time of year.
Even if you aren't staying at Christmas season, I recommend Wilderness Lodge out of the resorts you've listed. It's the most beautiful and impressive one. It's also only a pleasant boat ride away from the Magic Kingdom, which is great for a family with young kids on a first time visit in particular, since you'll probably be at MK a lot. It has good restaurants, two very nice pools, hot tubs and a water slide.
Fort Wilderness has an internal transportation system that you'd have to use before going out to the parks, which is a bit time consuming and not ideal for first timers (unless you're driving). If you are driving, Fort Wilderness can be a lot of fun, as they have (all for an upcharge) bike rentals, horseback riding, carriage rides, marshmallow roasts during movie nights, etc. You will need to check on the Covid status of these activities to see which are still available at the time of your trip. Fort Wilderness is also pretty and peaceful typically, but not as much so now as part of it has a big new building under construction. Also, Hoop Dee Doo Revue is a great comedic dinner show here, but it's currently closed due to Covid. Frankly, although I like Fort Wilderness (we tent camped there one trip), I don't think this is the best time to stay, due to Covid restrictions and construction. You can still drop by as a non-guest to ride horses (with a reservation- this activity is still available now) if you're interested in that.
Caribbean Beach (a moderate resort) and Art of Animation (a value resort) won't be as comfortable as Wilderness Lodge, which is a deluxe resort. They'll have smaller rooms, outdoor walks to get to the lobby & resort restaurants (and AOA only has a food court, no real restaurant), etc. Art of Animation also has no water slide or hot tub. If you're staying in an AOA suite, that will be bigger, but you'll still have to deal with the value resort level of amenities.