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One of the best things to do in Cambridge is to visit the glass flowers museum that is part of Harvard University on Oxford Street. It is inexpensive (or free) and your kids will be amazed at the level of detail in each glass flower.
While you're there, purchase lunch from the Chinese Food Truck or other food trucks parked by the science labs.
Back in the heart of Harvard Square, check out the Blacksmith House, the inspiration for Longfellow's 1839 poem "The Village Blacksmith." Be sure to buy hot cocoa and yummy pastries at Hi-Rise Bakery, an on-site bakery.