Jackson Hole has a little bit for everyone on 4th of July, and especially for families, I cannot think of a better place to spend your day.  Here is how I would spend mine:

On the evening of July 3rd, head to Teton Village for live music at 7pm and fireworks at 10pm.

Start the day off early in Teton Valley, ID (on the other side of the Tetons from Jackson Hole), watch the sun rise over the backside of the Grand Teton, and enjoy the 4th of July Hot Air Balloon Festival!  After you watch the hot air balloons rise into the sky with the Tetons behind them, you could enjoy a days' activities in Teton Valley, ID,  but I am going to take you back over to Jackson Hole.  From 7-10 AM there is a Street Pancake Breakfast at the intersection of Deloney and Center-visitors and locals enjoy this event every year.  At 10:30 AM the 4th of July Parade on Town Square begins.  I like to watch it on the Northern side of Town Square, with fewer crowds.

Later in the day, at 6pm, enjoy the Town Square Shootout. The Jackson Hole Rodeo starts at 8 PM, with fireworks at Snow King Resort at 10 PM.  The fireworks show is always very impressive (you could also try to see fireworks that night on one of our Snow King webcams).