re: What's a practical amount to spend on a vehicle for a family of 3 IYO?

Very relative to lots of circumstances.

How much is your household income?
Will this be the only vehicle?
How long do you plan to own it?
Who are the 3 people (3 adults? 2 adults and a child? One adult 2 children?)
How old are the children (car seats required?
What's your priority? (Safety, looks, size?)
How much do you want to insure it?

Countless other questions. Figure out a list of cars that fit your needs and weigh the pros and cons. Spend what you can afford/are willing to afford and fulfill your most crucial needs.