bpj,

Go with a good quality rack, like Tubus, Surly or Bruce Gordon. You won't regret it. The lightweight aluminum ones are cheaper but are much more likely to break when you can least afford it. Avoid racks that mount to seatposts like the plague, if you ever intend to carry any weight at all.

I really like Ortlieb panniers (Arkels are really nice as well), but if you are on a budget you can make your own out of kitty litter buckets (or something similar). There are instructions on the internet all over the place and they are quite simple to put together. https://www.youtube.com/watch?v=noCNXUsmyYs. You can make your own brackets or buy some ready made.

Trailers work well (especially for kids) but I also prefer panniers for touring.

I use an Ortlieb handlebar bag for my routine riding, it carries my pump, Alien tool, energy bar, shower cap for my Brooks saddle, and any other miscellaneous stuff I need that doesn't weigh much. Spare tubes, levers and patch kit go under the saddle.

Greg