Born in the UK children citizenship without ILR

I have a question, thanks for your time to look at my post and reply.

This is my situation.

I have a family.
Myself, wife and 2 daughters.
I am with Tier2 Minister of Religion.(Feb 2016 - Aug 2021)
Now we are planing to apply for ILR.

I just heard that kids who were born in UK, if their parents have ILR, then the kids can apply for citizenship without having ILR.

My plan was that we 4 of us all get ILR now and 1 year later we all apply for citizenship. But after I heard about this, I started to think it is waste of money since also ILR applying is more expensive than applying citizenship.

First daughter was born in 2014 in the UK when I had Tier 5. Second daughter was born in 2017 when I had Tier 2.

Is there anyone can give me an advise? Should only myself and wife have to apply ILR first and after we get ILR, we apply for my kids citizenship?

Thank you!

Children don't need ilr.

Once either parent is granted ilr, you can register both children as British on form MN1.

Thank you so much for kind and speedy reply.