Housing is expensive here, but everything else is pretty affordable. Once you get the hang of it, fresh produce is cheap, plentiful and available year-round (just don't BUY any at the Moss St. Market... fun market to hang out at, but don't shop there.) There are increasing numbers of corner grocery stores with good selections of affordable local stuff, and once you get to know people there is usually someone who wants to go halvesies on a side of beef or pork or a lamb or something, which ends up being pretty inexpensive.
Gas is pricey too, but it's a great city for cycling and the transit system is really good.
Good neighbourhoods to live in - James Bay, Vic West, Fairfield. There are decent parts in all the other neighbourhoods, but if you are crunchyish I would avoid Langford & Colwood.
Job opportunities depend on what sector you work in. Health, IT, post-secondary education, anything to do with seniors or eldercare, and volunteer organization are probably good bets.
When you're here, it would be a good idea to just explore the city and get a good feel for all the different neighbourhoods. Go to UVic and marvel at the unconstrained bunny population explosion (bring carrots) then go down to Cadboro Bay and enjoy the lovely sandy beach and the trippy cement toys. Hang out at the Dallas Rd dog park to see a good cross-section of the population, and windsurfers if it's breezy. Go to a bunch of markets - the James Bay one is fun too. Drive (or bike, if your family is up to it) up the peninsula and check out some of the little farm stores and stands (June is strawberry season!). Wander through Cook St. Village and have a pizza, Ethiopian, Thai, sushi, bakery yummies or really good coffee. Hang out on Fisherman's Wharf, eat ice cream and taunt the seals. Walk along the Ogden Pt. breakwater - or take the more challenging route down on the concrete blocks and watch for divers, otters and other marine life. Go to the Shaw Ocean Discovery Centre in Sidney (NOT THE UNDERSEA GARDENS!!!) and the Scratch Patch and Sidney Museum. Go to the Royal BC Museum (cool mammoth!) Have fish & chips at Red Fish Blue Fish on the inner harbour. Go to East Sooke Park and spend a day exploring all kinds of wildernesses.
Soooo many things to do! Victoria is a fun city. I love it here - I've lived here for almost 20 years and I'm still finding new things to do. And it's WONDERFUL for kids - so many community centres with children's programs, some great schools AND a great homelearning community, many kid-friendly restaurants, lots of good playgroups, lots of playgrounds, beaches...