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From what I know the living room is usually a formal space while a family room is more casual and often located near the kitchen. I have both in my house and the living room is the straight ahead from the front door so it's the first thing you see. Ideally this is to look nice at all times and where I greet company. I guess it sort of works that way since this is "my" room so it does stay nice, and the family room in the back is where my son and his freinds hang out and have games set up and is generally more cluttered. We always used our as a grown up space vs kids space, both have TV's and sofas and whatnot... but every family is different.
I have 2 "living rooms" (if described per my culture, Asian homes also usually only have 1 living room not 2).
A formal sitting room (with a sectional), mostly used for visits & guests while the other (with another sectional) is used for casual hangout mostly used by family (hence also called a family room) & doubles as a multi-media room for entertainment (Stereo systems, TV, game console etc.).
While my living room is off the kitchen... my family room is a floor below the living room.
Typically you see a family room as a room off a kitchen that is less formal, probably has the TV in there vs a living room which is typically at the front of the house, more "formal" and is considered a place to entertain. I don't know if it is an American thing or not. Our house doesn't have a "living room" we just have a "family room". I miss our living room actually. We had one in our last house and that was my quiet room to read in while everyone else watched tv. We also would use that for company, adults, while the kids played in the family room.
Our living room is near the front door. It's slightly more formal and kept neat. We don't have a tv there and we use it for entertaining, reading, using the laptop. The dog is not allowed on the furniture! To me, tvs do not belong in living rooms if there is a family room.
The family room is toward the back of the house, open to the kitchen. The family room is a casual room where we have the tv and its games, more casual comfortable furniture, and often kicked off shoes. You can sit cross-legged on the furniture if you want and the dog might join you. The children watch tv and play in this room a lot. There is apt to be a puzzle or school project in progress.
I never thought of it as an American idea, but maybe it is. Many of the foreigners that I know seem to have the idea that Americans are inappropriately friendly to strangers and acquaintances and yet do not value family relationships enough, but our homes seem to contradict this. If it were true, you wouldn't expect Americans to keep guests at arms' length in a formal room in the front of the house while keeping a room for fun with the family in the back and yet that is often how it is!
We have both a living room and a family room.
They are both at the front of the house... and both are used for family and friends.
There is NOTHING formal about either room, and both are equally neat and clean.
The rooms could just as easily be called the library and the TV room, as that is how that are mainly used. One for reading and conversation, the other for TV and conversation.
Other terms used by some for these rooms are den, game room, rec room, parlor, lounge, and bonus room.
Our living room is off the entry and the only time we use the living room is when we have a large party. Sometimes when I make phone calls, I'll go into the living room - it is such a pretty, warm room and sits empty 95% of the time.
Two large pocket doors separate the living room from the family room. The family room is where we read, watch television, entertain.
When the pocket doors are open, there is great flow between the two rooms.
We have a second, larger family room in our walk-out basement...that room is used for watching television, working out, reading.
We have a living room and we call the other room a den. When we moved in I decided to use the living room as an office I just thought it would get more use that way and we also have the piano in that room.
It is neat but not a formal room, we use it all the time it does not have a tv. The den we live in it has a tv comfy reclining furniture, pillows etc. We also have a bonus room for the kids to use. I grew up with a living room but with our lifestyle I just didn't think we would use it very much.
Thank you for explaining to me, I now realise I kind of knew the difference but I always thought there has to be something more to it.
So basically, one room is for the family and the other for the more fancy activities, such as guests and bigger parties. Growing up, we only had one room for all these things, so when we had guests we had to really clean up and be on our best behaviour. And we had no game room , we had to keep all our toys in the bedroom (we never did ).
I guess that is why the US has bigger houses then Europe: the family room, the living room, den, office...that is a lot of space! Cleaning must be a nightmare, but I would love to go through the decorating part
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, we had to keep all our toys in the bedroom (we never did 
).
