First of all, thank you for the option to participate in this contest. It was interesting to do this project.
I believe in a multifunctional and timeless design. Accordingly, my first thought was to make space multifunctional. My second thought was to try to preserve as many walls as I can because of budget. I will present one option that I find best, but I will describe a few possible modifications if you find it more suitable for your family.
The ground floor is reserved for parents and for daily family activities. There is a master bedroom with a master bathroom and a wardrobe room. The wardrobe room can have frost glass doors so It is translucent but not transparent, so the hallway has more natural light. Also, two work rooms are on the ground floor. They can be one big room if you like to work together or separate if you need more privacy.
Anyway, it is possible to make one wall and doors to totally separate all those spaces from the living room, dining room, kitchen and small toilet, if you would like totally privacy for parents' rooms. In that case, you would have two zones on the ground floor- the parents' zone and the family zone.
On the first floor- there are two sleeping rooms for children, a small living space for guests or for children/family, one room that serves as a playroom for children, and a guest sleeping room.
Multi-functionality is reflected in the option to change workrooms from the ground floor to sleeping rooms for children on the first floor. If you do not want your small children to sleep so far from you, work rooms can be on the first floor, and their rooms on the ground.
Maybe as they grow older, it will be suitable to have this arrangement that is now on the main drawing. It is something for you to think about, and I leave it up to you.
When entering the house, I assume that you will need some storage space for jackets and shoes. I placed it in the main hallway (stairways).
The second option is to have glass doors instead of that storage, so the dining room and kitchen can be more connected through that hallway. All three walls would be in glass in that case.
In case you leave it as it is on the drawing, two walls would be in glass. It brings openness and connection to the space. In the kitchen, there is a table with two chairs as options for a fast snack.
My main guide was that you want separate spaces for guests. So, if you have guests on a sleepover - they have a separate sleeping room, a sofa bed in the living room (or maybe some extra bed in the playroom). They have their own bathroom (children have theirs too) and they have a small kitchen to make coffee. There is a laundry room after the kitchen, and it can be separated with frost glass like a wardrobe room on the ground floor.
There is also an option to separate the guest area from the children's area with walls and doors in the hallway (so one bathroom entrance stays for guests, and a second for children).
About the attic: it can be a place for total relaxation and enjoyment. Bath tube big size, a shower, and a big sauna with a window can make a private spa. It is great that there is an exit to the terrace, which can be used for sunbathing for one person.
In the basement, it is a great area to put a gym, with some walls demolished so we have one big space with light from two sides. Mirrors will make the space look even bigger.
There can be also a storage room, utility room (or second laundry room), and hitting room. I see that you have a solar collector, but I assume that you will have a central hitting system also.