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Young frugal family wanting to drive around Lake Michigan! HELP

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Hi!!
Ive heard great things about this forum as I'm needing some great vacation advice!

We are a young family with children ages 4 and 6 and looking to drive around lake michigan this summer in the end of July... First two days will be in chicago and weve got that part finished but now we are going to drive north and then back around into Illinois and have no clue where we should stay, eat, or what activities there are for a young family... We like beaches, amusement parks, children museums, parks, a little nature as long as its hands on for the kids, the husband likes sports, and a little history is always good. Trying to keep our hotel or b&b budget around 100-120 a night and wed just need two doubles or a king with a pullout couch for the kids.. We are planning the trip to be about 10 days long and the first two are in chicago....so ive got 8 to fill :) OR suggest something totally different!! We are in southern illinois and looking for a great family vacation spot!

Thanks for any help!
Becky

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