> If you aren't American
I am not American, and I have had two kids (now adults) and had a hatchback for many of those years. No problem fitting everything in. Split folding seats help a lot.
The biggest car I have had is probably a Citreon Xsara Picasso (small by American standards, I think), and that only for about three years. It was nice to have the space but not essential.
I can imagine needing two cars, and some people I know do, but more than two in all (say one big, one small, and not small by American standards) is rare.