a lead paint chip ingested by a small child can kill them. most of the lead paint restrictions are because of its danger to kids, with an adult body you can handle much higher amounts, but still, its nasty shit, if youre gonna be staying there that long its best to deal with it. its probably not great for dogs either.
you ingest it eating it (of your hands, clothes, etc..) and breathing the dust.
respiratory masks can be bought for very cheap at hardware stores, so can rubber gloves.
scrap the paint, clean the walls, sweep the floor, vent the room, mop up the dust with wet toilet paper/rags, and inquire at the hardware store, there may be paint you can buy to paint over the old stuff thats made for this purpose, i'll ask my boss at work tomorrow about it.