Back yard- What do I do to make it family friendly and kid safe?

You could try artificial grass. We're looking into this for our backyard. We have grandchildren of all ages and a large dog (145lbs), so we need something comfortable and durable.

http://k9grass.com/

Playgrounds install giant squares of rubber, to be child friendly. Artificial turf can cause bruising for a child. Sand will attract ants. Mulch will need replacing, isn't cheap, and can contribute to problems with Artillery Fungus". Pine needles can become stiff and brittle. If you're willing to mow occasionally, there is a grass seed that grows only so tall, and stops. It was available from Gardens Alive.

Rubber would work, but it also gets very hot in the sun.

What about large pieces of rubber mulch?

I would sit down and draw out a plan on graph paper that would make your yard kid and family friendly. I think artificial grass would be a great alternative to gravel, but I would put in some creative fun things as well. Don't know how large an area you are talking about, but maybe a putting green or miniature golf area would work. I would consider a paver area for a table and chairs with an umbrella. I also don't know how old your kids are, but eventually they will have friends over to play or entertain. Use some of the gravel to form a border around the yard, so it doesn't go to waste. And mowing is not that bad.

If you can afford it, how about a ton or two of pea pebbles, rounded rocks about the size of black-eyed peas? Or thick artificial grass? ☺️