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Spokane's city slogan is "Near nature -- near perfect", so yes there are lots of outdoor activites for you and your family. Lots and lots of trees, hills, rivers, lakes, rock outcroppings - you'll find plenty of beautiful outdoor places to explore.
Culturally there are many types of plays, concerts, we have an amazing Spokane Symphony, choral groups. Downtown Spokane has a performing arts center, a convention center, the Spokane arena, the Big Easy concert house and many art galleries. Also, the MAC (Museum of Arts & Culture).
Regarding the housing under $125,000 for a 2 bd - it's possible to find something but it may need work or be very small. I would focus on finding something in a good neighborhood that's in your price range, and work on fixing it up if needed. Hope this helps. YOu might want to read through some of the other Spokane threads on here to get more information.
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