Hello A.,
First of all there is nothing wrong with your son's personality. He is simply mimicking what his ears hear.
Time out's are probably going a bit too far at his age.
Your story made me smile in remembrance of two different occasions wherein the children in my family spoke inappropriately!
The first instance probably happened about 20 years ago when my son and nephew were roughly two years older than your son. They became spatially aware of the proper word for male genitalia and they had the grandest time laughing each time one said it (and they took turns) and they were too tickled to stop, even when I entered the room. I was alarmed and mortified.
I asked them where they got the word (although we knew the correct terminology, we didn't think the boys were old enough to use the word responsibly---and I was right). We used other soft words to describe male genitalia. My son had learned the correct word at school and promptly shared it with his cousin (my nephew).
To make a long story short, I told them to continue to use the word (right then and there) until they didn't feel like laughing any more. I sat there through this exercise and when they got good and bored with laughing at the same word over and over again and seemed ready to quit, I had them say it one more time for good measure--It is important to note that I was not mad at them--I sat there as if I was amused with their new found brillance.
Needless to say they got bored real quick at the repetitive use of the word, especially with me staring at them.
I asked them at this point if were good and finished with their laughter and when they assured me that they were I asked them to then use the word in a sentence. I them told them both that they could only use the word from that day forward in reference to something relevent to their private parts as they had mentioned in their sentences.
I never heard either of them utter the word in public again and no warning shots were fired (LOL!).
The second incident now involves my Grandson;
My grandson is two years old (he will be three in May). His Mom brought him to my house one day and the two of us were talking and perhaps didn't include him the conversation enough. Anyway, he was playing with toys and exploring Grandma's house when all of a sudden he blurted out a curse word! Well to say his mother was shocked would be an understatement. I said, "did he just say what I thought he said?" and just as I got that out, he said it again.
I figured out why he said it again, he had gotten a reaction and some attention from his mother. All kids crave attention from their parents, regardless of whether it is good attention or bad attention.
I told her that we would redirect him and give him some other words to concentrate on. He said the curse word a few more times that day(seemingly with glee I might add!) but eventually, the redirection helped to take his mind off his new word.
My grandson's mother and I went back to our conversation and he said the word again, this time his mother didn't respond with surprise and eventually we included him in our conversation and didn't hear the word again.
Her thoughts on where he acquired his new word included the idea that his Father and Friends had been playing a videogame and cursed during the course of the game. She promised to get onto them about their language around her young son when they are engaged in playing Video games, which is truthfully not very often because they all work. However, there are occasions when they gather together for this activity.
I will ask her if he ever said the word again at home.
It makes sense to monitor absolutely everything your child watches on T.V. and hears in the home, including on the radio. They are at the height of their learning experience. That is their job, that's what they do best. They mimic the language that they hear, its how language is passed down from generation to generation in our society, so it makes sense to control what they hear.
If you have to provide two t.v.'s; one that constantly plays cartoons, kid shows and children's movies and another T.V. that plays nothing but adult news, gardening shows, drama and/or videogames, so be it. Whatever it takes to improve your child's environment. He shouldn't be on punishment because the portal through which the world steps into your home (the television) was left on a channel that allows characters to use curse words during the hours when children are normally awake and viewing.
Another suggestion (since your son got the word from T.V.);
Change the Channel! Jimmy Neutron Boy Genius never uses curse words!
Sincerely,
From A. to Another