We have lived in a small home for 45 years, raised three kids in it, very small rooms, I was a stay at home Mom until the last one left home. We all lived through it. When kids friends ate homemade goodies they loved them and didn't get them at home because their Moms worked. My kids felt very good about homemade meals and goodies being the norm for them. They knew where they were going to eat and sleep every day and night. Some kids aren't that lucky.
My saying to my oldest Sister was always "we don't have anything but we own everything we have". They lost everything they had and had to file bankrupcy. Lived way above their means.