How it impacts your kids will depend a lot on how it manifests. Growing up, my mom's anxiety and depeession caused her to snap at the smallest things. Life was a lot of walking around on eggshells. How that impacted me mostly is that I have a hard time knowing what "normal" reactions are to things. I've gotten a lot better with therapy and age, but I was too much of a people pleaser and doormat for the longest time. I had a hard time speaking up because I always anticipated the other person overreacting even though it was rarely the case.
She also did a lot of victim playing and guilting us and that has continued through adulthood, though I handle it better now.
My therapist agrees though that her mental health issues were beyond just depression.