I started 2 families at the same time to compare them. One family had 6 kids, I bought the luxury items as I could afford them and now and bought the room upgrades after the 6 kids were born.

Second family had 2 kids, kept mom and dad working most of the time and only upgraded the rooms (made it to level 2 kitchen and office).

Family one: Now 3rd generation. All upgrades and luxury items except for office 3rd upgrade and I'm only a bit short on that one. Original Mom and Dad lived to 70's, generally happy, few illnesses, had kids every time they tried. (A "maybe" and a "would be nice")

Family two: Now 3rd generation. Still only office and kitchen first upgrade. I finally started buying luxury stuff in hopes that they will have more kids and work more efficiently. Lots of illnesses. Had to do a bunch of dr. consults and give baby boost to have kids. (Maybe and Not reallY).

So it seems to me that buying the luxury stuff as you can afford it makes the peeps happier, so they work more, so they make more money so they can get more stuff!

Your thoughts?

I had all upgrades done during my 1st and 2nd generations' time.
However all parents ( including subsequent generations) never lived pass their early 60s. They fall sick quite frequently too. Hmm..guess I did not spend enough time with them :P

But I did read somewhere that upgrades do make our peeps happier

they do also seem to miss us if we close the program. i minimise mine so i can work and that seems to be ok. if i close it then when i reopen they say where were you we missed you!

Even when I pause the game, they seem to be less happy and/or more sick if I'm gone for more than a day or two.