Nintendo and family sharing
Solution 1:
Yes, game sharing on the Switch works exactly like on the Playstation 4. What you intend to do will work.
If you ever need to purchase another Switch (your first one broke beyond repair, was stolen, is lost, or you wish to have your own), you must understand the concept of "Primary console". If you don't, your child may no longer be able to access your games. As I said before, this works exactly like on the Playstation 4. The following is only relevant if you own multiple consoles, and can be ignored if you already understand how it works on the PS4
An account can always access games it has purchased. This is always true. In addition, an account can also access games purchased by other accounts. To do this, the following conditions must be met:
- The playing account must be on the same console as the owning account.
- The console must be the "Primary console" of the owning account.
- The game must already be installed on the console (only the owning account can download the game, if it's not already installed).
Also keep the following points in mind:
- Each account can only have a single "Primary console". However, a console can be "Primary" to many accounts.
- You can change your "Primary console" at any time as long as you have access to the "Primary console". If you don't, you can still do so online (via your Nintendo account), but only once per year. Changing your "Primary console" is done by unregistering the old "Primary console", then accessing the eShop on the new one.
If you have multiple kids, each with their own Switch, changing "Primary consoles" becomes incredibly inconvenient.
In this case, consider creating a Family group and letting your kids buy their own games. You can set purchase restrictions, and you'll be notified whenever a purchase is made on the children accounts. Your kids could then share their games with each other, by lending their own primary Switch to each other.
Note that the above is only relevant for digital purchases. Cartridges can be shared freely, and each account will have its own set of save data.