To give you a general guide for food prices, in April/May steak meals were ranging from 20 to 25 lira, chicken dishes from 15 to 20 lira, pasta from 10-16 lira, kebabs from 1.5 to 6 lira. A large Efes averaged between 4 and 5 lira, local spirits around 7 lira and cocktails around 10 lira.
There's a nice small market in Gumbet itself on Sunday - not touristy, more where the locals go to get their fruit, veg, cheese, etc but it's nice to visit. Turgetreis market gets very busy and I'm not sure the kids would be happy there - I'm not convinced that the markets are any cheaper than the shops really. I prefer Bodrum market on Tuesday - or even Friday for the fruit and veg market which is a great sight to see.
Another nice place to visit is Sabinci Park in Turgetreis - there's a nice cafe there where you can sit and look out to sea, it's a great place for the kids to run around and there's some keep fit/gym equipment for them to have a go on. Also the marina at Turgetreis is great to walk round - very upmarket, take some bread and feed the fish, it's fascinating to watch them.
Bodrum is a busier place so the kids may get fed up after a while but the castle is worth a visit, you can go up on the ramparts and the kids would like that.
I've never had a bad steak in Gumbet. One of our favourite restaurants is Chinatown (you'll see how popular it is by how busy it gets). Their steaks are great and they do some different toppings - steak garchi is my favourite where the steak comes topped with chilli and garlic - drool! They've also introduced a new one this year, steak asian with a hot sauce. They also do a boneless rack of lamb or a lamb shank if lamb's your thing. If you go there, get your wife to try a meze as a starter - great, loads of different things to try!! Mind you, do try the Turkish food - it's great. There's some great kebabs - all different, and some fantastic stew things (sorry can't remember the name of the different ones at the moment). If you're not sure, just ask in the restaurant and they'll be glad to help. If you like fish, the sea bass is to die for - drool again!! There's so much choice in the restaurants in Gumbet that you'll be spoiled.
Take the kids up to the windmills in between Gumbet and Bodrum - it's a bit of a hike up there but it's worth it for the views. This year they've already refurbished one of the windmills and are doing another. If you can get a kite while you're out there, it's a great place for flying a kite. We were over in April when they had a kite festival - it was a fantastic sight.
Keep up with learning the few words in Turkish - it's much appreciated. Where our house is we have all Turkish neighbours and they love to hear our efforts - mind you their English is better than our Turkish and we get by with a mixture of both and lot of hand movements!!