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Most people these days don't use a viewfinder (phones don't have them) so wouldn't worry too much about that to get the youngsters interested in photography.
Given their age I would go as simple as possible and see if the develop "the bug" before getting a more complicated camera.
Maybe this article can give you some ideas
I want to buy my 5 and 8 year old grandchildren cameras.
Nothing complex - nothing too expensive (second hand maybe?).
I've no idea where to start: Should they have a viewfinder? Should they have a zoom?
Any ideas please?
I’d look at a older camera on a close out deal. Not really sure of your budget but you can likely find an older Canon or Nikon DSLR for a couple hundred bucks or so...
I would not give a child a Fuji Instax camera simply because of the price per image and the amount of film that will likely be used. Instead, a point and shoot like a Canon Elph for approximately $100 is perfect. That's the price of about five packs of Fuji Instax film.
I gave a nephew a Fuji Instax mini of some sort two years ago when he was five. Didn't use it much then, now he's using it all the time. Loves the fact that there's a print in his hands when he takes a picture.