What should I do to protect the occupants of my home (family, toddlers)?

I suppose grounding each outlet would be best (but very expensive?)

Next option would be replacing outlets with GFCI outlets?

Which outlets are the most important to replace with GFCI? Outlets that appliances plug into? Near water?

If an outlet has no appliance in it/isn't near water, does replacing it with GFCI add any protection?

Currently, we have outlet plugs (to prevent the kids from sticking anything in the outlets), but say the wife forgets to put one back in (or a kid gets one out), and one of the kids puts a paper clip, or whatever, into the outlet, they receive a shock (mild, strong, or potentially fatal, correct)?

Due to the potential fatal risk of that, I feel like I should replace any outlet I think a kid could get access to, with a GFCI outlet. Does this sound logical?

Thanks in advance!

 

If you place a GFCI on the first receptacle of a circuit and run the rest on the circuit off the load side or use a GFCI breaker all receptacles will be protected. You can replace your two prong receptacles with three prong child proof receptacles (marked GFCI Protected_No Equipment Ground) if you have the circuit GFCI protected. See: NFPA :: Safety Information :: For consumers :: Causes :: Electrical :: Tamper-resistant electrical receptacles