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2 week beach holiday with kids in NorthEast - Need suggestions, please!

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Hi,
We are planning a two week family vacation with our two kids (7, 3 yo) for the first two weeks of August. We are based in Nothern NJ. We've been going to the outer Hamptons (Hampton Bays) for the past several years but we are looking for a new (and possibly less expensive) alternative destination. We can either be based in one place or switch places a couple of times this time to make it more of a sightseeing trip but we'd like to stay at least part of it on/near the ocean. We like proximity to good restaurants, cute towns/villages and of course, kids activities. Any suggestions will be much appreciated!
Thank you!

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