This study focuses on methods for planning living environments in children’s welfare institutes by analyzing problems that occur in the lives of children living with staff in such institutes. The recently built institute types investigated were an "LD" plan in which the living room and dining room are located in the center of the dwelling space, and a unit plan in which semi-prepared foods are normally used. We present detailed guidelines for planning children’s institutes. The structure and layout of the spatial units for children living in child-welfare-institutes were analyzed according to the following: 1) type of LD plan, in terms of the ease with which relationships develop between children and staff; 2) the usefulness of tatami mat space; 3) the degree to which life skills are learned during the preparation of meals in the kitchen of each unit; 4) the harmonious distribution of private and shared rooms; and 5) the importance of a personal desk and bed for each child.