Doug and Beth Peabody's Highlands home is a great example of how parents can live in a home designed for grown-ups that is also an accommodating haven for kids. Built in 1922, this Federal-style house has lived through two phases of renovation since the Peabodys bought it three years ago. Each stage has taken into account the ever-changing needs of daughters 10-year-old Maddie and 8-year-old Corrine while respecting the personal styles of Mom and Dad.

The 3,200-square-foot house literally has a formal side and an informal side.  A formal living and dining room are on the right of the foyer's staircase, and the laid-back den and kitchen areas are to the left. Beth Peabody said her family definitely lives to the left, especially after fully integrating the original garage into what was a small den adjoining the dining/cooking space.

"The kids started to grow and that cute little room got smaller and smaller and smaller," she says. Now the former garage blends in with the den and features a large family-friendly table that's great for both board games and Mom and Dad's laptop computer. A tall bead-board "locker" keeps organized the girls' backpacks, jackets, shoes and other drop-off-at-the-door clutter in a handy - and cleverly hidden - place. A hint of the original brick wall is an ode to the room's previous existence.

As for the booth seating and oversized, custom-built table, Peabody said that was a fun requirement that allows for cozy, casual family meals. "After all, when you go out to a restaurant, you always ask for a booth, right?" she says.

The Peabodys balance full-time careers (Beth runs Stegner Investment Associates and Doug is managing director at Convergent Capital Management, LLC) with their daughters' busy calendars: school, softball, soccer, dance, and basketball. Beth Peabody credited builder Fred Bennett with making sure the renovations blended so well with the original space while maintaining a practical flow for this on-the-go family. She also said designer Sue Davidson kept the family's lifestyle and preferences (including allergy concerns) in mind while decorating. "It's really about us and she appreciates that," Beth Peabody says.

Fussy artwork is not needed. The chili-pepper-red walls in the den enliven the space. (The warm color scheme is also a nice consideration for the man who lives in a house filled with females.) Original windows throughout bring in both light and great views. The kitchen's booth sits below a large window that opens to the backyard. "That's what I love about the backyard," Beth Peabody says. "You don't need artwork in this room. Nature changes it all the time."

The Peabodys are looking forward to the next renovation stage that will incorporate -- that's right -- more family-friendly space in the basement and third-floor attic. The basement will serve as play space for Maddie and Corrine and the girls' bedrooms will move to the uppermost level, necessitated once more by their changing needs. "Maddie's little room was cute, but now -- it's just too small," her mother says.

Furniture should be covered in durable fabrics that help hide wear and dirt. Before you break out the plastic wrap for your sofa, however, Davidson pointed out that durable fabrics can be stylish, too. Chenille is one example; it's "nubby" texture wears well; another is leather. "The use of leather is good in a room with children because it's indestructible," she says.

Furniture should serve multiple functions. A table can be used for family dining, but also for games, puzzles, homework and craft projects. A trunk can serve as a coffee table and also as toy storage. An ottoman is great for the kids to rest their feet on, but can also serve as extra seating. And, with the addition of a tray, becomes an elegant coffee table when Mom and Dad entertain.

For safety reasons, Davidson recommended that tables in a family space should never have sharp corners or glass tops.