Well I guess for starters, I find with fishing equipment like rods & reels, its mostly a "you get what you pay for" sort of situation, for example, if you were to goto Bass Pro Shops and buy like a $30 combo rod & reel, you know that it will probably break down sooner than for say a $60-$200 combo, but if you did get that $60-$200 combo, you'll get that many more features + warranties etc etc I think you get the picture.
As for tackle (baits & lures) that's a different story in my opinion, at first it may seem intimidating, like "what lures should I buy", the thing is, its more a matter of knowing what you're going to fish for, aswell as knowning which lure colors work best. After you've learnt that & know which lures & lure colors do best, you'll feel more like a kid in a candy store in no time. Personally I like to categorize baits into 2 categories, natural food baits & then enticer baits. Natural baits are usually brown, green, or black colored worms, flies, mouse baits, etc its more of a staple to the fish than them instinctly stricking the bait I find. Then theres baits like topwater buzz baits, poppers, & spinnerbaits that make the fish go nuts, colors like florescent pink, chartreuse & blood red, bright pearl white baits that are specifically made to make a commotion in the water & get scores of fish to attack it.
And if you're simply going to fish for sunfish & small bass with the kids, all they need is some worms or a small piece of berkley's trout worm texas rigged under a float with #12 gamakatsu octopus hook. If you plan on fishing for bigger bass & pike, then you may want to start looking at inline spinners (Mepps & Panther Martin spiners), or try using stick baits (senkos), theres also topwater baits aswell like poppers or buzz baits which are a load of fun !!
